Photobucket Sold To MySpace for $250M now plus $50M later
Techcrunch is reporting that the photo sharing company Photobucket is to be acquired by News Corp company MySpace. At the end of March, I wrote a blog on how to value photo widget / photo sharing companies. I predicted then that anyone who wanted to acquire Photobucket would have to pay significantly more than $200M:
Assuming the public (revenue) projections are realistic, I don’t think anyone could buy Photobucket today for $200M, simply because it would be so easy for people in Photobucket to hang on for another year.
The deal that has apparently been struck is for $250M now, with an additional $50M to follow provided that certain targets are met, making the total value up to a potential $300M.
If you’re interested in seeing why Photobucket is/was worth hundreds of millions, you can read my original blog entry on valuing photo sharing companies.
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