MySpace - Photobucket Acquisition
May 7th, 2007 | Categories: acquisitions, networks, social media, strategy, video
It was made official today… MySpace buys Photobucket for $250 million.
PhotoBucket had been looking for a buyer for months now with little luck. Upon hiring Lehman Brothers, the company was seeking a price tag of $300+ million, but to no avail. In the end, it was reported that only MySpace and IAC were in the running.
Not too long ago, MySpace began blocking PhotoBucket embedding. This caused quite a stir in the web world and blogosphere. After all, the explosive success of PhotoBucket has to be largely attributed to MySpace. In any case, MySpace lifted the ban and began unblocking PhotoBucket embeds once again. Was this because they knew something we didn’t? Were acquisition talks in the making already? Who knows, but my suspicions tell me that there is more to the story than we know.
PhotoBucket controls the image space with an estimated 40%+ market share. Compare that to Flickr or W
ebshots whom are believed to have no more than 10% market share each, and this just goes to show you the penetration power of PhotoBucket.
By the way, PhotoBucket earned $6.3 million in revenue last year and is projected to generate $25+ million this year. Furthermore, they have a user base of 40 million users, with 85,000 more being added every day. Not bad for a ‘web 2.0′ company. This one is legit - it has revenues.
May 7th, 2007 at 8:00 pm
[…] By the way, PhotoBucket earned $6.3 million in revenue last year and is projected to generate $25+ million this year. Furthermore, they have a user base of 40 million users, with 85,000 more being added every day. Not bad for a ‘web 2.0′ company. This one is legit - it has revenues. [ Via MappingTheWeb ] […]