Photobucket sells for 10x Flickr to MySpace

I just got into Dallas, had a few minutes to check TechMeme, and see that Photobucket just got sold to MySpace for $250 million. That’s about 10x more than Flickr went to Yahoo. Calling Kristopher Tate. Calling Kristopher Tate! (He’s the founder of Zooomr, who probably will get all the funding he wants now).

I wonder how the world will change on our next flight. See ya in four hours in San Francisco to find out!

51 thoughts on “Photobucket sells for 10x Flickr to MySpace

  1. @20

    What revenue?

    It’s a leech service. They are currently all on the top of alexa.com right now.

    People use the service, the host company funded entirely by VC pays out millions in bandwidth, and they get next to no revenue in return, ultimately waiting for that big buy out.

    That is the business model, and it has less than nothing to do with traditional business.

  2. @20

    What revenue?

    It’s a leech service. They are currently all on the top of alexa.com right now.

    People use the service, the host company funded entirely by VC pays out millions in bandwidth, and they get next to no revenue in return, ultimately waiting for that big buy out.

    That is the business model, and it has less than nothing to do with traditional business.

  3. A couple of weeks ago, when Scoble reported that MySpace was pulling Photobucket videos, it seemed like a negotiation tactic towards a possible acquisition. It turns out that is was just that.

  4. A couple of weeks ago, when Scoble reported that MySpace was pulling Photobucket videos, it seemed like a negotiation tactic towards a possible acquisition. It turns out that is was just that.

  5. Very unrelated to this topic, but I just thought I’d ask how much you have been using your Apple TV these days? It just seems you haven’t been talking about it much these days. In fact, I don’t hear anyone talking about them.

  6. Very unrelated to this topic, but I just thought I’d ask how much you have been using your Apple TV these days? It just seems you haven’t been talking about it much these days. In fact, I don’t hear anyone talking about them.

  7. @16 “None of these services is worth anything in the sense of a traditional business with sales and expenses.”

    Eh? To me, the valuation that Photobucket seems to have achieved looks to be based on absolutely traditional(and solid) business metrics: revenue and growth rate.

  8. @16 “None of these services is worth anything in the sense of a traditional business with sales and expenses.”

    Eh? To me, the valuation that Photobucket seems to have achieved looks to be based on absolutely traditional(and solid) business metrics: revenue and growth rate.

  9. If you head over to Techmeme, the story you get is not that Photobucket is getting acquired by MySpace. Instead what you get is that Valleywag took Techcrunch by surprise. Lame.

  10. If you head over to Techmeme, the story you get is not that Photobucket is getting acquired by MySpace. Instead what you get is that Valleywag took Techcrunch by surprise. Lame.

  11. That someone paid so much for such a crappy service tells me that Web 2.0 is heading for DotCom Crash 2.0.

  12. That someone paid so much for such a crappy service tells me that Web 2.0 is heading for DotCom Crash 2.0.

  13. @15

    I know I said my last comment was the last one.
    Do you understand what photobucket did?

    They were there back in September of 05 when everybody started cloning social networking. Before youtube even started. Ever since they have been getting users to invade myspace and put links to their site all over the place. On millions of profiles.

    They had been sucking up bandwidth charges for years now, all leading up to this quintessential moment when they were going to cash in on it.
    Much like youtube was loosing 1M per month and sinking fast until they hit their moment.

    None of these services is worth anything in the sense of a traditional business with sales and expenses. They exist for one purpose only.

  14. @15

    I know I said my last comment was the last one.
    Do you understand what photobucket did?

    They were there back in September of 05 when everybody started cloning social networking. Before youtube even started. Ever since they have been getting users to invade myspace and put links to their site all over the place. On millions of profiles.

    They had been sucking up bandwidth charges for years now, all leading up to this quintessential moment when they were going to cash in on it.
    Much like youtube was loosing 1M per month and sinking fast until they hit their moment.

    None of these services is worth anything in the sense of a traditional business with sales and expenses. They exist for one purpose only.

  15. I had literally two minutes to get that post out before I was gonna get kicked off the flight. I have no idea where I got the YouTube from. My mind is pretty weird sometimes.

  16. I had literally two minutes to get that post out before I was gonna get kicked off the flight. I have no idea where I got the YouTube from. My mind is pretty weird sometimes.

  17. This is my last comment. I found a pattern.

    Find a large site with user created content.
    Get users to spam the website with media from yours, not necessarily like youtube.

    Then put harmful and or annoying JS codes in your media.

    Before you do this, make sure your service is used by enough of the leech host site’s most vocal members, so that when they filter the URL to your leech, they start complaining everywhere.

    Rub in that there is an element of their site, that they never asked for, that is completely out of their control.

    Win at Web 2.0 user created!

    I’m off to make a million and I have an 8000 member head start! I am thinking out loud so others may benefit.

  18. This is my last comment. I found a pattern.

    Find a large site with user created content.
    Get users to spam the website with media from yours, not necessarily like youtube.

    Then put harmful and or annoying JS codes in your media.

    Before you do this, make sure your service is used by enough of the leech host site’s most vocal members, so that when they filter the URL to your leech, they start complaining everywhere.

    Rub in that there is an element of their site, that they never asked for, that is completely out of their control.

    Win at Web 2.0 user created!

    I’m off to make a million and I have an 8000 member head start! I am thinking out loud so others may benefit.

  19. I sense a foto bukk-it! php script bonanza coming soon, and a lot of bandwidth sold on godaddy. Call me nuts, but every time something sells way above it’s real price, it happens. Can’t help it.

  20. I sense a foto bukk-it! php script bonanza coming soon, and a lot of bandwidth sold on godaddy. Call me nuts, but every time something sells way above it’s real price, it happens. Can’t help it.

  21. MySpace’s stance on peripheral services has always been to threaten, attack and attempt to shut down. This reversal is going to fuel a lot of sh*t as far as startups wanting to leech again.

  22. MySpace’s stance on peripheral services has always been to threaten, attack and attempt to shut down. This reversal is going to fuel a lot of sh*t as far as startups wanting to leech again.

  23. Does Photobucket have some nice patents?

    Not so long ago there were access problems, thus it is quite possible the deal process started then.

  24. Does Photobucket have some nice patents?

    Not so long ago there were access problems, thus it is quite possible the deal process started then.

  25. Scoble, I am wondering what you’re thoughts are regarding the situation regarding Mix07 and the attendance of Wired’s “Fred”?

    After all the fuss you made that a developer should be kicked out to make room for Fred (who was tardy in signing up before it sold out) because Wired is oh so important for getting Microsoft’s message out to developers, Channel 9 members voted to let Fred in (a MS employee gave up his spot), but then Fred didn’t even bother to show up.

    You’re being called out towards the end of the Channel9 thread:
    http://channel9.msdn.com/ShowPost.aspx?PostID=303144

  26. Scoble, I am wondering what you’re thoughts are regarding the situation regarding Mix07 and the attendance of Wired’s “Fred”?

    After all the fuss you made that a developer should be kicked out to make room for Fred (who was tardy in signing up before it sold out) because Wired is oh so important for getting Microsoft’s message out to developers, Channel 9 members voted to let Fred in (a MS employee gave up his spot), but then Fred didn’t even bother to show up.

    You’re being called out towards the end of the Channel9 thread:
    http://channel9.msdn.com/ShowPost.aspx?PostID=303144

  27. You think his sleep deprivation’s bad now!? Wait ’til the little Tike arrives (‘course Patrick’s already given him a taste of THAT!).

    Funny thing is we don’t hear IACI nabbing any of these guys up. Rupert’s group (NEWS) is smart… For the long haul I’m thinking I’d put my money on Barry’s group though. They’re FAR more efficient and focused in their M&A… Appears “local” is their next round of plays.

  28. You think his sleep deprivation’s bad now!? Wait ’til the little Tike arrives (‘course Patrick’s already given him a taste of THAT!).

    Funny thing is we don’t hear IACI nabbing any of these guys up. Rupert’s group (NEWS) is smart… For the long haul I’m thinking I’d put my money on Barry’s group though. They’re FAR more efficient and focused in their M&A… Appears “local” is their next round of plays.

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