Denver-based Photbucket.com and Seattle-based Ontela today announced that they are merging operations in an effort to create a new type of online photo company. The 88-person company -- which will be known as Photobucket and based in Denver -- will combine Photobucket's consumer audience of 22 million users with Ontela's deep relationships with more than 30 wireless carriers.

Ontela CEO Dan Shapiro -- who will become CTO of the newly-merged company and will remain in Seattle -- declined to comment when asked about the financial arrangement. However, he did say that News Corp. -- which bought Photobucket for $250 million two years ago -- will retain a significant ownership stake in the company. (Shapiro declined to say whether that would be a majority stake). Meanwhile, Ontela's venture investors -- which include The Walt Disney Co.'s Steamboat Ventures, Oak Investment Partners, Voyager Capital and others -- will contribute new cash to the company.

Earlier this year, TechCrunch reported that Ontela was buying Photobucket for $60 million. Shapiro declined to comment on that price and refused to say whether one company acquired the other.

Shapiro

"We are not saying anything about the financial details. It is a merger of operations," said Shapiro, a former RealNetworks employee who co-founded Ontela. "From a strategic standpoint we are incredibly excited. We think the potential value of the two companies combined is even better than either of them separately."

Tom Munro, who has served as chief financial officer of Ontela, will take on the role of president at Photobucket. The company also plans to look for a CEO.

There were a lot of moving pieces in the deal -- from News Corp. to Disney -- and that made the transaction somewhat complex. However, Shapiro said it was a "testament to the strength of the deal" that all of the parties came together.

Ontela -- which employs 23 people -- raised $15 million in two rounds of financing.