This week MySpace announced that it was looking into the possibility of acquiring mega photo sharing website Photobucket. The deal according to reports is estimated to hit roughly $250 million USD in cash. Currently, Photobucket cooperates with a number of other major social networking sites including Bebo, Blogger, Friendster and Xanga and even integrates well with eBay.

Since its launch several years ago, Photobucket has remained a free service. Account holders are able to upload roughly 10,000 photos and videos onto the website and never pay a penny. Photobucket then allows account holders to link to photos from other websites.

The relationship between MySpace and Photobucket has not always been smooth. Recently, MySpace prevented its users from linking to photos hosted on Photobucket. The two companies eventually came to an agreement and the ban was lifted.

As of right now, the deal between MySpace and Photobucket is not yet final and reports suggest that the deal could still fall through. Users on social sites that compete with MySpace such as Facebook are still uncertain of what will become of their abilities to link to photos if the deal goes through.