The web 2.0 bubble continues to inflate. More and more of these mergers and aquisitions going on. News Corp is getting Photobucket at an awesome price compared to the YouTube deal with Google Interesting read here on the similarities and differences between the YouTube deal and the PhotoBucket deal. News Corp sure plays hardball. Cutting photobucket off from Myspace traffic while various buyers were courting photobucket clinched the deal and saved them a shit load of money, it seems. Dirty poker indeed!
They could have realized a higher price having an IPO. Kinda sad. I figured it would have went for a lot more even though it hasnt earned much profit.
Revenue wise, they appear to be doing very good. Only $6 million last year, but are on track for their goal of $25 million this year. And they are adding 80,000+ new users per day. Not too shabby. I think News Corp could quickly turn that $25 mill into $50 or $100 as they already have a big network of established advertisers they could plug into the site. And will of course likely give advertising a little more exposure to juice out more revenue per visitor.
No, when your dealing with that volume of traffic it is not a lottery. Its mostly CPM advertising based on page views (impressions). Even if it was CPA or even PPC, when you have that much traffic, revenues are pretty stable and predictable. After 1 million people see an ad you'll have damn good stats on how often it gets clicked and you can rest assured that the 2nd million will do the exact same thing.
I think tahts a good buy as far as News Corp is concerned. They are also trying to buy Dow Jones (the media company) and not the stock index.
Question is why do they have so many members? Is it because people save on computer space and bandwidth? Thats a ridiculous amount of members joining daily if the figures stated are correct.
Obviously. Most people don't even know what a web host is, so they go to places like photobucket to host their pictures and videos.
myspace wants to keep as many members on its site as possible...and they may be looking to internalize all the widgets. it makes good sense for myspace in my opinion. on another note the user base is predicted to be a 100% overlap, which is kind of unique
Exactly. Photobucket grew on the back of myspace as a widget for myspace users to host their images and vids. With MySpace buying them out they now have control of that widget and can keep new similar widgets off their site. The 100% overlap is obvious. Myspace users use photobucket as their image host for their myspace pages amd to share with their myspace friends. I read the post on TechCrunch that was trying to say this overlap was not a good thing as Myspace did not buy any new users. Overlap Shoverlap. So what! All Newscorp cares about is displaying advertising. Who cares if the same users are seeing those ads. In fact its even better as far as the advertisiers are concerned. Branding, Branding, Branding! Let them see it again and again till it sinks in.
With so many of these kinds of huge transactions going on, It makes you think about the future of the internet... Come up with a unique idea and take action. Someone mite buy it it!
I don't use Photobucket but know a lot of people that do. Photobucket = $250 million not to shabby. I hope google, microsoft, news corp buys all of us off.