Confirmed: MySpace to acquire Photobucket for $250 Million

This is a great move for myspace. They finally figured out how to charge their users real money for those picture filled profiles -- all while being able to act like nice guys who give away everything for free. I predict that they will actually make a nice return on this investment.

More interestingly though, myspace has now put captchas in place for editing myspace profiles and similar actions that photobucket and many web2 sites have been using extensively. For example, photobucket could automatically put pictures in any section of your profile just by supplying photobucket with your myspace username and password.

Is myspace trying to crush future competition? Yes, yes they are.

I think many people saw this coming. It's interesting how it can be viewed as a (semi) recently acquired startup acquiring another. The list of companies that would be interested in buying up your startup is indeed much larger than Yahoo and Google.