A month after acquiring Webshots from CNET, (NSDQ: CNET) American Greetings (NYSE: AM) is making a second buy in the online photo space: OTCBB-traded PhotoWorks for $26.5 million. The $0.595 per share offer represents a significant premium to today’s $0.26 close. PhotoWorks is a photo sharing site with an emphasis on selling users physical items (calendars, greeting cards, etc.) they create with their digital images, so it should be a nice bridge between Webshots and American Greetings’ core business. The deal is expected to close in January 2008. Release.