Talk about a love/hate relationship. It looks like the high-profile feud between MySpace and Photobucket might have jump-started a romance between the two companies. MySpace’s move to block content from Photobucket originally got the two parties together in the same room. After that, the two companies stopped fighting with each other and started talking about a partnership… and even a possible merger. The value of the reported merger is estimated to be somewhere around $250-300 million. Photobucket had been shopping itself around for a buyer since late February.

MySpace is smart to make nice with PhotoBucket. According to web stat company Hitwise, “Photobucket Accounts for 73% of MySpace’s Photo-Related Traffic.” And many savvy web users have been using Photobucket as a web marketing tool.

Rumors of the deal first surfaced last weekend on the tech gossip site Valleywag. The deal hasn’t been confirmed yet by either party.

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