MySpace's parent company Fox Interactive Media has bought photo-sharing site Photobucket and photo- and video-editing tool Flektor.
The terms of the deal were not disclosed, but the firms are believed to have cost Fox in the region of $250m (£127m).
Peter Levinsohn, the president of Fox Interactive Media, said the combination of a photo-sharing and photo-editing website reinforced the company's user generated content focus.
"The acquisition of these two companies is a perfect strategic fit for us that reinforces FIM's leadership in user generated content," he added.
"Photobucket extends our reach among personal media sharing enthusiasts and the innovative new entrant Flektor brings highly differentiated new tools to the table that will drive the next generation."
ComScore estimates that Photobucket has 44 million users globally, 47% of whom link to social networking sites. Photobucket's technology will be rolled out across FIM's online operations.
Traffic to Photobucket accelerated during 2006, making it the most popular photo-sharing site in the US.
By midway through the year, reports said the site accounted for 2% of US web traffic and for a 44% share of photo-hosting sites.
Flextor allows users to edit photos and video in real time, store them and embed them on blogs or profiles on social networks such as MySpace.
http://business.guardian.co.uk/story/0,,2091441,00.html
===========
It's actually kind of interesting since a lot of myspce users use photoshobucket to host their pictures and myspace page design elements...
this way myspace makes money on both ends...