According to a GoFish press release, User generated sharing site GoFish will acquire Bolt Media as part of a stock swap.

GoFish Corporation (OTCBB: GOFH), the leading publicly-traded online video company where millions of people come to watch, upload and share videos, today announced it has agreed to acquire Bolt, Inc. (aka Bolt Media) in a stock-for-stock transaction valued at up to $30 million. The combined company will develop an online video network for the creation, distribution and monetization of made-for-Internet programming that is ideally suited for advertisers targeting the 18-34 year-old demographic.

However, the New York Times cited in their article that the sale has as much to do with the need to raise case since Bolts settlement with Universal Music Group for allowing some of its users to upload videos, which contain Universals' music.

To pay for the settlement, which will combine cash, stock and advertising credits, Bolt has agreed to sell itself to GoFish, a smaller rival, for as much as $30 million in GoFish stock.

Not withstanding the legal motivation for the deal, I think there will be more of these acquisitions as second tier type YouTube sites seek differentiation and profitability. To use the phrase, Don't try to boil the ocean, I think these on-line sites would do well to partner with companies like Akimbo, TiVo and others to broaden their reach into the living rooms of America, Perhaps there they will find the road to profitability.