Recently, MySpace and Photobucket made a truce. The truce was that Photobucket would not violate MySpace’s terms of services again. The terms of service was that if Photobucket widgets and videos were to be embedded in MySpace profiles, there should not be advertisements contained. Especially because MySpace would not be benefitting from the revenue that Photobucket would be generating from the ads.
On April 24, the truce was made, but now MySpace wants to be more than just friends. It was confirmed today that MySpace has acquired Photobucket according to Mashable. The amount is reported to be $250 million. Photobucket was valued at $300 million by Lehman Brothers. Photobucket made $6.3 million in revenues last year according to ValleyWag. The company is reported to make $25 million+ in revenue this year.
Photobucket has 41 million users and received $10.5 million in funding last year from Trinity Ventures.
What does this mean for other widget ad networks? Andrew Chen, an Entrepreneur-in-Residence at Mohr Davidow Ventures e-mailed me his perspective.
[Additional coverage: TechCrunch, TechMeMe]