The user generated image, video and joke-sharing site eBaum’s World is being acquired by HandHeld Entertainment for $15 million in cash up front, plus $2.5 million in Handheld stock and up to $52.5 million in cash and stock over 3 years.

The site, based in Rochester, NY, is an Internet old-timer, having launched in 1998 offering lowest common denominator entertainment for a male audience. The name is derived from that of the creator - Eric Bauman - and the site took $5.2 million in revenue in 2006 ($1.6M net) according to acquirer Handheld. It was one of the earliest names in viral video, and has deals with AOL Video, Facebook, FOX Mobile and others.

The financial details, as explained by PaidContent, are a little complex. eBaum's willl get $15 million in cash when the deal closes, plus $2.5 million in stock, and a further $2.5 million in stock if targets are reached. But wait, there's more: $15 million in cash and $17.5 million in stock if further targets are achieved.

Add that all up and it's a good sum, but you can't help feeling that eBaum's ultimately lost out to YouTube, Digg and other "web 2.0" content sharing sites.