MySpace Acquiring Photobucket
Tuesday, May 8th, 2007;
-- Jordan McCollum |
UPDATE: TechCrunch lists the purchase price at closer to $250M, and confirms the deal with “more senior people.” They say “that there is also an earn-out for up to an additional $50 million.”
UPDATE 2: Andy says…It appears that MySpace already had access to just about every Photobucket user, and they already had the technology. Did they make the acquisition simply to block competitors from getting their hands on it?
Valleywag reports today that MySpace is acquiring Photobucket (okay, more accurately, it’s News Corp., but whatever). After seeing their names linked in the news lately, perhaps they thought now would be a good time to capitalize on their shared ink.
Photobucket’s blog says nothing on the topic, although today they tout a new partnership with Snap Shots and last week they announced winning the OnHollywood Top Private Company award as well as Hitwise #1 winner in Entertainment/Photography.
Photobucket, with $6.3M in sales and 17M uniques/month last year, was reportedly seeking $300M. Valleywag speculates that the deal will be announced today.
Before we begin speculating, remember that last month’s rumors that eBay acquired StumbleUpon have yet to materialize.
Okay, now speculate away.
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May 7th, 2007 at 4:31 pm
I’ve been reading reports that estimate by purchase price at around $250m. Why Newscorp/Myspace would pay 10x yearly revenue is beyond me. I never would have guessed they would pick up Photobucket after the episode that happened a few weeks ago.
May 7th, 2007 at 5:32 pm
Thanks for pointing that out. I went back and saw that TC listed that number; I added that to the post.
May 8th, 2007 at 12:42 am
[...] Monday, May 07, 2007 MySpace Acquiring Photobucket? | Marketing Pilgrim Tags: myspace [...]
May 8th, 2007 at 6:18 am
[...] MySpace Acquiring Photobucket? | Marketing Pilgrim (tags: myspace photobucket) [...]
May 8th, 2007 at 11:52 am
[...] Jordan McCollum of Marketing Pilgrim provides Photobucket’s latest financial numbers. [...]
May 9th, 2007 at 11:31 am
This is a good idea for MySpace since everyone using photobucket to add pictures to their page just causes its load time to increase.
MySpace as it is is a very inefficient site when it comes to loading a ‘tricked out’ page. Hopefully they will move everything onto the same servers once the acquisition is finished.
MySpace then needs to update its programming logic to further improve the way the entire site works.
May 9th, 2007 at 10:34 pm
So was the fit that MySpace threw the other week just a negotiating tactic?
May 9th, 2007 at 11:43 pm
[...] MySpace Acquiring Photobucket [...]
May 10th, 2007 at 12:43 am
Simon — Maybe that’s how they got from $300 million down to $250 million
October 12th, 2007 at 3:40 pm
[...] Yesterday I wrote about history bracing to repeat itself by forcing developers to pick one widget API over another for social networks like LinkedIn, Facebook, MySpace, and others. Facebook is the only platform that has a truly open API for widget developers at the moment, but that hasn’t stopped people from trying to develop third-party content providers for popular social networks. [...]