PhotobucketValleywag caught the exclusive on the landmark deal that now makes MySpace the proud new owner of Photobucket. Photobucket has yet to publically announce how much the deal is worth but they were looking for $300 million.

Photobucket is by far the most popular method of publishing photos on not only MySpace (where it accounts for 70% of all photo traffic), but across thousands of forums and other websites. The bandwidth costs of such a vast operation have been a concern to analysts and is more than likely one of the key factors in the acquisition.

MySpace and Photobucket haven’t always had a rosy relationship and the users have often been hung out to dry because of this. To promote it’s MySpace Videos service, MySpace blocked users from using Photobucket’s videos back in April.