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  1. #1
    ABW Ambassador Snib's Avatar
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    MySpace buys Photobucket for $250m in cash
    http://www.techcrunch.com/2007/05/07...r-250-million/

    Really interesting considering MySpace temporarily blocked Photobucket videos last month. Apparently the blockage is what got them into talks of acquisition. Not a bad deal for a site that was started back in 2003.

    - Scott
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  2. #2
    Resident Genius and Staunch Capitalist Leader's Avatar
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    Amazing...

    I keep seeing "photobucket" in the img src of people on non-webmaster sites. It's amazing that they aren't killed by the bandwidth costs of all that hotlinking! Yet they encourage it!

    And the only ads I see are those (apparently CPM) ones on their site. THAT really makes a profit (considering the above)?! And enough that anyone would want to buy it. Just goes to show you can sell anything on the net. Including companies.

    Quote Originally Posted by Article
    Photobucket generated $6.3 million in revenue last year and planned on hitting $25 million or more this year. They have 36 million registered users and add another 85,000 per day.
    That's quite a year-on-year hike! I wonder, a) IS it actually profitable? and b) Will they really get that much growth? That growth projection seems awfully optimistic.

    Without knowing how far in the red they may be, it's hard to say how crazy such a purchase is. I do know that image serving can rack up the bandwidth extremely fast, and that those offsite imps (at least for the stills) aren't bringing any ad revenue. And I'm not of the "if it sells for a lot, it's a good thing" philosophy. Relying on CPM ads has been shown to be a very shaky proposition...
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  3. #3
    ABW Ambassador Snib's Avatar
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    Photobucket is profitable from what I've read. They offer a paid service where you can get more space for $25/year. Plus they're also focusing their efforts on making the site more of a destination by adding photo and video search. Hopefully they improve the service and make the site more useful for content seekers. All-in-all I think they're taking the right steps to do extremely well with the site.

    - Scott
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  4. #4
    Resident Genius and Staunch Capitalist Leader's Avatar
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    They offer a paid service where you can get more space for $25/year.
    Ah, there's a hope then. People are incurable packrats! I've heard of some who have gigs and gigs of music and photos...way too many to ever actually get any use out of. Yet they never want to delete 'em!

    So they probably will get some signups for that.
    Plus they're also focusing their efforts on making the site more of a destination by adding photo and video search. Hopefully they improve the service and make the site more useful for content seekers. All-in-all I think they're taking the right steps to do extremely well with the site.
    Maybe, but I still think that 1-year growth projection is awfully optimistic. Those are incremental improvements, nothing all that phenomenal.

    What I did notice when I bothered checking out the site today, is that there's no way to buy prints (unless I missed it). IMO they're missing out on that angle...I know some sites have that already, but it's a natural go-together with photo hosting. And some of the pix on Photobucket are quite nice.
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  5. #5
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    Photobucket is not designed to be a destination site - their tools are focused on easy uploading, transcoding to flash (in the case of video) and posting to other sites. 63% of all media links to sites like MySpace are served by Photobucket. Compare that to 8% for Flickr and 1.38% for YouTube.
    I understand why they are selling. When Myspace blocks your site, you are literally $crewed cos at 63% of your eggs in on basket, somebody blocking you mean 2/3 of your outbound traffic is cut off

  6. #6
    The "other" left wing davidh's Avatar
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    They offer a paid service where you can get more space for $25/year
    The idea of using photobucket doesn't occur to most of us in the affiliate world, because we're used to having vendors/networks serve their images for us, but use of photobucket by webmasters is very common outside of our little world.
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  7. #7
    Not that fat. ReallyBigGuy's Avatar
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    Wow, that's amazing.

  8. #8
    ABW Ambassador Snib's Avatar
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    Quote Originally Posted by davidh
    The idea of using photobucket doesn't occur to most of us in the affiliate world, because we're used to having vendors/networks serve their images for us, but use of photobucket by webmasters is very common outside of our little world.
    Something tells me that strategy won't scale very well if you want to run a photo hosting site of your own.

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  9. #9
    ABW Ambassador Snib's Avatar
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    Here's a nice little comparison between this and the youtube deal:

    http://www.techcrunch.com/2007/05/07...googleyoutube/

    Very interesting.

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  10. #10
    What's the word? Rhia7's Avatar
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    The acquisition was a deal for Myspace if Photobucket can help retain MySpace's popularity. If Myspace's popularity diminishes, then what?

    I decided to open a Facebook account after I read that MySpace's popularity is on the decline.

    Do you think Myspace will lose in popularity to Facebook?

    Yes or No?
    ~Rhia7 -- Remember the 7
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