MySpace buying Photobucket ?

MySpace is one of the biggest spaces in the world of social networks. It fact, most people would call it the biggest space. Pretty simple to operate, it allows users to create their own profiles and put whatever they want on these pages; text, pictures, video, anything goes. The younger generation have taken to MySpace like a fish to water. But you really can't store much of photos and videos on MySpace, so users need to store these on another service and link them off their MySpace pages.
Photobucket attempts to fill that void, and allows users to store their photos and video at the site, and more importantly link them from their MySpace page so that users viewing their profile are able to see these images and videos in a very efficient way.
But one wonders as to how Photobucket makes money ? It allows millions of users to store their images and videos, but it does so for free. If they started to charge money for this service, people would switch to something else in a flash. Trying to entice advertisers by showing them lots of young users trying to update images and edit videos may not exactly work. After all, YouTube also had a ton of users, but they were not exactly able to set the advertising world on fire. So it is apt that Photobucket tries the same route that YouTube took, selling themselves to a richer buyer who is looking for this functionality.
Refer this article from Forbes:

Are MySpace and Photobucket tying the knot?
But that's what Gawker Media's Valleywag blog reported Monday morning. A few hours later, the TechCrunch blog said it had confirmed the acquisition at $250 million. Both MySpace and Photobucket representatives declined to comment--which could very well mean that something is going on between the two companies. Or not.
A brief recap: MySpace is one of the world's most dominant social networks--with 107.7 million visitors per month--and allows its users to stick just about anything they want on their pages. Many of them have been using Photobucket, a relatively unknown start-up until recently, to store the images they stick on the site, as well as other sites they visit.
MySpace’s interest in Photobucket should not serve as evidence of a probable exit strategy for other start-ups that thrive largely on the user bases of social networks like MySpace. Photobucket is a rare case. In many other instances, MySpace would prefer to build its own competitor than buy a tool or feature off a popular widget maker. And when MySpace does that, those start-ups are toast.