Mobile video application Qwiki is now part of Yahoo, according to an announcement recently made by the technology giant. While the terms of the sale were not revealed, online publication AllThingsD reported that the internet giant paid around US$50 million to acquire the start-up.
“We’re excited to announce that Yahoo acquired Qwiki, a company that uses awesome technology to bring together pictures, music and video to capture the art of storytelling,” according to a post made by Yahoo on Tumblr.
Unlike other start-ups that were acquired by Yahoo, Qwiki’s application will be supported by the internet giant.
Doug Imbruce, founder of automated video production firm Qwiki, described the acquisition as a triumph for the New York-based start-up.
New York Mayor Michael Bloomberg commented, saying Qwiki is an excellent example of the Big Apple’s flourishing tech scene. Although the firm was founded in the west, they later transferred and became part of New York’s booming tech community. The mayor also sent congratulations and well wishes to the app for its alliance with Yahoo.
Market gossip about the acquisition first surfaced in June. Qwiki fits in with the profile of many of Yahoo’s recent acquisitions: It focuses on mobile applications and its price tag is less than US$100 million.
Under the reigns of CEO Marissa Mayer, the internet giant has purchased more than 12 start-ups similar to Qwiki in recent months. Yahoo share prices showed no change in after-hours trading despite the news.