Palo Alto, Calif. - News Corp.'s MySpace has reached a preliminary deal to acquire the photo-sharing site Photobucket for $250 million in cash, The Wall Street Journal reported on Tuesday.

Citing a "person familiar with the situation," The Journal reported that talks are ongoing, and could still break down. An anonymous source has since confirmed the news to CNET News.com.

Photobucket allows people to upload videos, images and graphic art and link it to websites such as MySpace. In March, the site drew 14.2 million unique visitors, according to Nielsen/NetRatings.

Just last month, MySpace blocked Photobucket videos from being uploaded or viewed on the social network, but lifted the ban following talks between the companies.

The deal would come about six months after Google completed its $1.65 billion acquisition of YouTube

Related Links:
http://tinyurl.com/yowg3g (WSJ)

http://news.com.com/2100-1030_3-6181869.html

http://www.photobucket.com