Update: The Mail on Sunday had the same story five months ago.  So why is it a Guardian exclusive then?
Original post: That money would have bought them MySpace two years ago...BBC can spend up to $680 million on social networking projects including local and international M&A in the sector, Guardian reports. Though that is very sensationalist: the amount is the money BBC Worldwide, its commercial arm, has at its disposal for expansion, into just about anything it desires, including social networking. So the story tone from Guardian is very misleading and take it as such.
In any case, the idea is to develop social networks around its main branded shows, like Top Gear and BBC Good Food. Also, BBC’s magazines show there is an appetite for internet communities based around the corporation’s top shows, BBC says.
Chance are it won’t use all of this to fund the digital growth...and there will be a big public hullabaloo if it did. I have my doubts on BBC making any big (or even medium sized) acquisitions in this space. Building is the way to go for them without opening more can of worms politically.