Yahoo is said to be in talks to buy social networking site Bebo for a cool $1 billion dollars. If true this could be the final nail in the coffin of the once oh-so-hot Yahoo buying Facebook rumor, as this was likely the only $1 billion coin jar they had earmarked for social networking purchases.

Facebook has simply gotten too hot of a property for probably almost any suitor. They long ago turned down Yahoo’s offer of $1 billion, supposedly nixed the idea of negotiating when Yahoo was willing to go as high as $1.62 billion, and now probably couldn’t be had for any less then $3 billion.

Bebo seems like it would be a nice buy for Yahoo, though it is pretty insane that the price would be nearly double what News Corp. paid for MySpace a few years ago (MySpace is 4-5 times bigger then Bebo). If only MySpace had held out a bit longer, they could have held claim to the ugliest site ever sold for $5 billion.

I’ve actually had a Bebo account for a little while and I have exactly zero friends on it. It’s sad, I know. Though it could have something to do with the fact that the majority of its users are in the UK, even though the site is based out of San Fran. If you want to check it out, feel free to add me.

More on this: Mashable | TechCrunch | Technically Speaking