Yahoo has just announced its acquisition of New York based start-up, Qwiki, for an estimated US$50 million. The company is best known for creating an iPhone app (also called Qwiki) that lets users put together a string of video clips, photos and music tracks to create a short movie. The embedded video above is an example of what Qwiki does, and was made by the Qwiki team to announce their acquisition by Yahoo. Yahoo also said that while the Qwiki team will join the Yahoo's New York office to help "reimagine Yahoo!’s storytelling experience," the Qwiki app will continue to be supported and will not be killed off (at least for now).
While all that pivoting seems unusual, the company recently settled on its mobile-only focus, which is just where Yahoo CEO Marissa Mayer has been aiming Yahoo’s efforts, looking to create a series of daily apps and services to reinvigorate its offerings. She has also been on the lookout for talent. Qwiki is led by CEO and co-founder Doug Imbruce, but its other co-founder is Louis Monier, the founder of the AltaVista search site, who left the company in 2011. “We don’t want to be the world’s 10th video-sharing app. There are plenty of those,” said Imbruce to Lauren Goode in an interview in February. “We want to be the first real storytelling app.”