MySpace is reportedly set to acquire image-sharing site Photobucket for around $250m (£125m).
Photobucket is currently the largest image-sharing site on the web, with a reported 41m registered users.
Recent Hitwise stats showed that 73% of MySpace’s photo-related traffic goes to the image-sharing site.
However, last month, MySpace stopped its users from uploading Photobucket slide shows and videos to their pages, saying that the company has violated its terms of service by encouraging users to include ads in their slideshows.
The two companies came to an agreement, but the issue highlights how much Photobucket depends on MySpace.
Since launching four years ago, Photobucket has grown rapidly and now has over 14m unique visitors monthly, adding 85,000 registered users daily.
The acquisition has not been officially confirmed so far, though many sources are reporting that a preliminary deal has been agreed.