MySpace acquires Photobucket

Techcrunch confirmed the rumor that MySpace acquired Photobucket for $250M in cash. We're obviously big fans of MySpace and have a good relationship with their team. Acquiring Photobucket provides them with the single largest photo hosting company in the world. Much like the acquisition of MySpace for $580M by News Corp years past (what's the minimum one of the top visited sites in the world would be valued at? $10B?), I think Photobucket's true value will surface over the next several years. 40MM registered users and 17MM unique visitors a month may not have translated to significant revenue today ($6MM in 2006 and a projected $30MM in 2007). But as the widget economy continues to develop, monetizing user photo content will become a significant revenue driver in the near future, especially if that photo content is tagged (better yet auto-tagged Danny ;)). If there's one thing ALL internet users have a ton of is photos (much more so than video content). What better way to know an online user than by their photo content? Interesting things happening here that I don't think many really understand.