MySpace takes over media-sharing site for $300m

The parent company of MySpace is buying media-sharing site Photobucket for about $300 million, bringing together two of the Internet's most popular hangouts, an Associated Press report said.

The Associated Press report said the deal will give MySpace and sister sites under News Corp.'s Fox Interactive Media access to Photobucket's photo and video technologies, while Photobucket gets Fox's resources to accelerate development of its tools.

The Associated Press report quoted Peter Levinsohn, president of Fox Interactive, as saying that Photobucket also would be able to incorporate advanced slideshow generators and other editing tools from Flektor, which Fox also announced it bought.

'Together, they represent a powerful combination and we are thrilled for them to join our network,' Levinsohn said.

The report said financial terms of the two deals were not disclosed.

But three people familiar with the Photobucket deal, citing anonymity because they were not authorized to discuss the price, said Fox was paying about $300 million for Photobucket, about half of the $580 million News Corp. paid in 2005 to buy MySpace, the report said.

The Photobucket deal comes just weeks after a public spat in which MySpace partially blocked content from Photobucket, the report said.

Under the deal, Photobucket would remain a standalone operation within Fox, and users of rival social-networking sites such as Facebook could continue to incorporate Photobucket content in their profiles, the report further said.