MySpace In Deal To Acquire Photobucket - InformationWeek
IoT
IoT
Business & Finance
News
5/8/2007
01:43 PM
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%
RELATED EVENTS
How to Talk to Your Management about IT Security
Aug 30, 2017
This webinar will bring you some new methods for describing and measuring your cybersecurity initi ...Read More>>

MySpace In Deal To Acquire Photobucket

Reports put the price at somewhere between $250 million and $300 million.

Having gotten over its brief breakup with Photobucket last month, MySpace has decided to legitimize the rocky relationship with an acquisition offer.

Fox Interactive Media, a division of News Corporation, has agreed to acquire Photobucket, according to an anonymous source cited by tech industry blog Valleywag and in subsequent reports in the New York Times and Wall Street Journal.

A Fox Interactive Media spokesperson declined to comment in a way that suggests confirmation is forthcoming. "We're not commenting on these rumors right now," said corporate communications director Dan Berger in an e-mail. "As soon as we have a statement, I will pass it along."

A spokesperson for Photobucket didn't immediately respond to a request for comment.

Terms of the deal couldn't be verified but reports put the price at somewhere between $250 million and $300 million.

The deal won't result in a significant traffic increase for MySpace because there's so much user overlap between the two sites. According to Nielsen//NetRatings, Photobucket, with almost 15 million unique users in March, would add only about 2 million new unique users MySpace's audience of almost 56 million. (Photobucket claims on its site to have an audience of 41 million. Nielsen//NetRatings measures site traffic rather than registrations.)

Even so, the deal should serve to enhance News Corporation's already considerable online clout and to deter MySpace users from defecting to other social networking sites. Sites that store user files, such as Photobucket, are inherently more "sticky" than social networking sites because images files aren't as portable or disposable as profile information.

It's not clear what role MySpace's decision last month to temporarily block Photobucket widgets had on the acquisition talks, but observers have interpreted the move as an effort to remind Photobucket that it's beholden to MySpace for traffic.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll