PhotoBucket + MySpace vs. Google + Youtube
MySpace is to acquire PhotoBucket, the image hosting website, for $250 million in cash. There might also be an earn-out of $50 million.
PhotoBucket has been looking to sell since March. They were originally looking for $300 million or more, but from their price right now, it seems that there may be a few other buyers competing.
Compared to Google’s buying of Youtube for nearly $1.65 billion. When the deal closed, the stock was worth $1.8 billion. Photobucket is now being acquired for less than 1/4 of that.
When YouTube announced their acquisition in October 2006, they were not generating a lot of revenue. Photobucket, however, is now generating $25 million and is projected to grow this year.
The two companies are not that different in size. Photobucket has 40 million registered users and is gaining thousands per day. Youtube had far less registered users at the time of their acquisition.
Not counting the revenue and the registered members, to look at it another way, Youtube got paid $67 per unique visitor, and PhotoBucket got $13.
Photobucket’s widget was also blocked from MySpace until the time before the negotiation of the acquisition of PhotoBucket. That may be to prove to Photobucket that they could not generate a lot of revenue without MySpace.
Was Youtube overpaid? Was Photobucket acquired for an unfair amount? Did MySpace play clean? I was on TechCrunch and they asked their readers these questions. I’d like to ask my readers the same questions.
In a year or so, Photobucket may be as popular as MySpace.
(View Comments…)
Comment posted by Emma
at 5/9/2007 6:15:19 PM
Thanks, glad you approve lol
Comment posted by Mimi
at 5/9/2007 5:45:42 PM
Photobucket was underpaid. definitely. 
Comment posted by Mimi
at 5/9/2007 5:44:51 PM
Photobucket was underpaid. definitely.
Comment posted by Emma
at 5/9/2007 7:43:53 AM
Thanks for your feedback, i’m grateful that you actually say what you feel not just “love your lay” etc..
I like the menu that size however lol, but yes thanks 
Ahh the ol’ myspace buying out places again, i’ve already read about this.. i wonder what this holds for us website owners that provide graphics and get linkbacks from myspace comments :O
Comment posted by Sienna
at 5/8/2007 6:42:39 PM
I love the professional look of your layout ♥ & google +youtube is more fair
Comment posted by Carrie
at 5/8/2007 5:56:58 PM
I LOVE NS. All the tech news and the information is very good!!
Comment posted by Lela
at 5/8/2007 5:41:38 PM
I think Myspace paid Photobucket an unfair amount of money. Compared to Youtube, Google, and the market, which prices are rising, it is a steal.
Comment posted by Steve Wordpressguy
at 5/8/2007 4:18:08 PM
Youtube was WAY overpriced in my opinion, apart from the recognition of the name. If anyone is looking for a video someone else saw online they search youtube. Not google video, not photobucket, just youtube. Look at it that way and i don’t think the photobucket price seems too low.
Comment posted by Christa
at 5/7/2007 9:48:18 PM
Sorry I gave you the wrong url yesterday.
http://sentb.blogspot.com/
Comment posted by Charity
at 5/7/2007 8:11:39 PM
I’m not sure if MySpace played fair or not. After all, everyone I knew had a PhotoBucket account for the purpose of hosting their banners, buttons, any image file that needed to be hotlinked. But I find it interesting that a site as popular as PhotoBucket would sell for so much less than YouTube sold for before it became so popular.
