Fox Interactive Approaches In Deal To Buy Photobucket

Google+ Pinterest LinkedIn Tumblr +

Photobucket allows its users to store photos and video and then easily fall into the pages of major Web sites such as Facebook, eBay and MySpace in particular, which is also owned by News Corporation.

Agreement has not yet completed, but the parties have smoothed the key issues and focuses on the finer points, according to this person said that the price could be as high as $ 300 million. The person asked not to be identified because of the sensitivity of the negotiations.

Representatives of MySpace, Fox Interactive Media and Photobucket declined to comment.

New talks were first reported earlier Monday at a Silicon Valley blog, Valleywag. Photobucket said last month it had hired Lehman Brothers to explore a possible sale of the company.

Photobucket, which has offices in Denver and San Francisco, has raised a number of old sites to become the largest and fastest-growing photo-sharing service on the web. Unlike competitors, photo sites, such as KODAK Gallery, Shutterfly and Flickr, which is owned by Yahoo, Photobucket positioned itself a tool for people who use sites like MySpace, and no place to get prints or to interact with other photographers.

The company has grown to large media companies thriving envious. A year ago, said it had 14 million members. On its website on Monday Photobucket cited 41 million users.

The site is free for basic use, but costs $ 25 a year for a premium membership, which includes an extra storage and the ability to store videos over five minutes long. It also displays advertisements to users when they manage their accounts.

The company already has a symbiotic relationship, so sensitive, relationship with MySpace. According to research firm Hitwise, week ending Saturday, 60 percent of the traffic came from MySpace Photobucket users who have put their photos and videos from Photobucket. It was also the third largest destination of people leaving MySpace, after Google and Yahoo.

“There is a clear synergy between these two places,” said Bill Tancer, general manager of global research at Hitwise.

This close relationship has made MySpace uncomfortable in the past.

Last month, MySpace blocked slide shows and videos stored on Photobucket, said the company was violating his conditions of service by incorporating its own ads in media files. After a week of discussions, the two companies, their differences and MySpace removed the block.


About Author

Leave A Reply