Yahoo Announces its Next Big Acquisition

Yahoo YHOO has officially acquired Qwiki. Promoted as an app for "one tap storytelling" on the iPhone, Qwiki automatically merges photos, videos and music into one mobile movie. On the app's official blog, Qwiki founder Doug Imbruce said that the program will "live on as a standalone entity inside Yahoo!, where we will grow our thriving community and where our team will continue to work to help you share life's best experiences." Imbruce also provided a quote from Mayor Michael Bloomberg: "Qwiki is a great example of the momentum in New York City's booming tech sector," said Bloomberg. "While the company was started out west, they relocated here to be a part of our surging tech community… We congratulate them on their partnership with Yahoo!, and hope they continue to grow and thrive in New York City." Related: Yahoo Revamps Flickr and Acquires Tumblr all in One Day "This is so much more than a happy ending," Imbruce added. "It's a beautiful new beginning. Yahoo!'s focus on our city is further inspiring. "On behalf of the Qwiki team, our sincerest appreciation to the investors, advisors, believers and USERS for helping us reach this outcome. We are so very grateful." Qwiki's investors included Lightbank and Lerer Ventures, among others. Together they poured more than $10 million into the company. If the $50 million selling price is accurate, those investors may have walked away with a very hefty paycheck. Right now, Qwiki is only available for iOS -- and is only branded as an iPhone app. That is likely to change now that Yahoo has acquired the firm. On its Tumblr page, Yahoo said that it will "continue to support the Qwiki app, and the team will join Yahoo! in our New York City office to reimagine Yahoo!'s storytelling experience. Stay tuned … there's much more to come!" Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ