MySpace will acquire Photobucket to challenge Google alliance

Murdoch witnessed Google's first attempt to steal YouTube, but news companies have already sought out their goal, namely, Photobucket, a provider of image sharing services. MySpace said it would buy the latter.
According to CNET, MySpace, the world's largest social networking website, recently announced that it had agreed to buy Photobucket, the largest Web image sharing service provider. However, the news has not yet been officially published, but is from people familiar with the industry.
According to the employee whose name is not convenient, the two sides still need to reach an agreement on several details before officially releasing the purchase information. So far, the specific financial information of the acquisition is unknown. However, according to statistics, there are more than 40 million registered users in Photobucket. From the sales prices in recent months, Photobucket is unlikely to accept a price of less than $0.3 billion. However, according to Reuters on Monday, the final transaction amount may be $0.25 billion.
In fact, there is no deal between MySpace and Photobucket. Just a month ago, MySpace wanted to claim that the latter had violated the cooperation agreement, that is, "encourage users to send ads on MySpace, add to your own network slides." In response, Photobucket claims that MySpace began to block slides and video content from image sharing websites without notice. However, since the dispute began, the two sides have actually sat down for consultation and finally contributed to the acquisition.
It is reported that MySpace is still trying to reduce its purchase price because it is operating the "sharing images" service, largely on social networking websites such as MySpace. However, the current popularity of Photobucket is obvious to all. According to statistics, during the last year, the number of website views per month doubled to 18 million, and thus became the top 50 websites in the world, at the same time, the number of videos uploaded each day exceeds 45 thousand. Photobucket is undoubtedly one of the best options for news companies to win a helping hand from the Google YouTube alliance. It is reported that the number of users covered by the two companies is as high as half. This also means that through cooperation, MySpace can increase the number of monthly views by up to 9 million. Based on this number, the average cost per new user is $35. "There is no doubt that this is a good deal ." Said mclini, an analyst at Forrester.