Monday, May 07, 2007

Blocking as a negotiation tactic

So MySpace is rumored to be negotiating to buy Photobucket for $250M. This raises the question: Did the blocking of PhotoBucket videos come before or after MySpace decided to buy PhotoBucket? If MySpace decided to buy PhotoBucket and then put the block in place it looks like the ploy worked and saved MySpace a significant chunk of change. It possibly scared off other potential bidders and kept the purchase price below the $300M target price PhotoBucket is rumored to have put on the company.

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