REUTERS -- May 8 -- MySpace has reached a preliminary deal to acquire Photobucket, the world's top photo-sharing site, for around $250 million in cash, a source familiar with the deal said on Monday. Besides MySpace, Photobucket is popular on sites such as Facebook, Bebo, Friendster, eBay, Craigslist, Blogger and Xanga. Photobucket raised $2.5 million in initial financing from Trinity Ventures and another $10.5 million from a group of investors led by Trinity a year ago. It eventually moved to Silicon Valley and now counts more than 65 employees. Photobucket holds ~40% share of the U.S. online photo market, nearly four times more than second-ranked Yahoo and was the 22nd most visited U.S. site overall last week. It recently struck a deal with Adobe Systems for free tools to edit, or "remix," images on its site. FULL ARTICLE @ REUTERS