As anticipated by industry insiders, photo-blogging and community Web site Fotolog is off the acquisitions market. It will be acquired by the France-based Hi-Media Group, an online advertising and e-commerce network with operations in eight countries. Fotolog's growth rates in Italy, Portugal and Spain made it a natural fit for Hi-Media, which is the third-largest ad network in Europe.

The transaction is valued at approximately $90 million, net of transaction expenses. The sum will be divided in a 23/77 ratio of cash to stock options, providing Fotolog's current shareholders with newly-issued Hi-Media shares. The new shares are estimated to represent almost one-fifth of Hi-Media's total share capital by the time the deal is closed in November.