Why MySpace Blinked

WHY MYSPACE BLINKED
[SOURCE: Forbes, AUTHOR: Rachel Rosmarin]
[Commntary] Now that MySpace and Photobucket have beaten their swords in plowshares, the people who pay attention to these kind of things are wondering what kind of backroom deals were made to broker the peace. I've got no idea. But I do know who won this fight--and it isn't the world's biggest social networking site. MySpace attempted to push Photobucket around, and then gave up. And it didn't even try that hard: It blocked Photobucket's videos, which are a non-factor right now. If it really wanted to push it would have stopped Photobucket users from putting their still images on MySpace. But that would have riled up its own users. More important, it's not clear how much blocking photos would have actually hurt Photobucket at this point. The site is steadily becoming its own destination, and relies less and less on sites like MySpace. Its 40 million users send links pointing back to Photobucket from 300,000 sites besides MySpace, and more and more users are coming to Photobucket to edit, design and share their creations instead of leaving.
http://www.forbes.com/business/media/2007/04/24/photobucket-myspace-murdoch-tech-cx_rr_0424photobucket.html