Yahoo buys iOS video sharing app Qwiki for a reported $50M
Yahoo has acquired mobile video application developer Qwiki. Financial terms were not disclosed, although sources told AllThingsD the deal is valued between $40 million and $50 million.
Qwiki's free Apple (NASDAQ:AAPL) iOS app automatically groups the best photos and videos on the user's phone, combining them with captions, music and other effects to create mini-movies optimized for sharing via email, SMS or social media. Qwiki has raised more than $10 million from investors including Lerer Ventures, Lightbank and Facebook (NASDAQ:FB) co-founder Eduardo Saverin.
While Yahoo typically shuts down its smaller acquisitions, it will continue to support Qwiki as a standalone app. The Qwiki team will join Yahoo's New York City office.
Yahoo has been on a spending spree since former Google (NASDAQ:GOOG) exec Marissa Mayer took over as CEO in mid-2012. In addition to snapping up social networking platform Tumblr for $1.1 billion in cash, Yahoo has recently acquired mobile-focused startups including Summly, Jybe, Alike, Stamped, Astrid and GhostBird Software.
Mobile is one of Mayer's four key focus areas, alongside search, display and video. Researcher Onavo Insights reports apps like Yahoo, Yahoo Mail, Yahoo Weather and Flickr all posted significant user gains in May 2013, indicating Mayer's aggressive mobile push is paying dividends.
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