MySpace to buy Photobucket

It claimed it was the biggest Photosite in the world, but chances are until a couple of weeks ago you had never heard of it. Now it seems, MySpace has snapped it up for $250 million in cash according to report on the Internet.

Photobucket says it has 41 million registered users and grows by 80,000 members a day.

In April, MySpace stopped blocking Photobucket users' photo slideshows, videos and "remixes" — user-created videos that feature content supplied by a third party such as a movie studio or recording label — from appearing on its members pages, ending their dispute.

Photobucket, founded in 2003, had been seeking a buyer since March, when they hired investment bank Lehman Brothers Inc.

According to internet traffic rankings service Hitwise, Photobucket accounted for 73% of MySpace's photo-related traffic in March, and Photobucket received 57% of its traffic from MySpace.