Yahoo has acquired Qwiki, a mobile video app, the two companies announced Tuesday. The terms of the deal were not immediately disclosed, but AllThingsD reported that Yahoo paid around $50 million for the startup.
"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," Yahoo announced in a post on its Tumblr page. Unlike some of the other recent startups Yahoo has acquired, Qwiki's app will continue to be supported.
Doug Imbruce, Qwiki's founder, described the acquisition in a blog post as a victory for the startup and for the city of New York, where it is based. Qwiki even included a statement from New York mayor Michael Bloomberg on the acquisition:
“Qwiki is a great example of the momentum in New York City’s booming tech sector," Bloomberg said. “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.”
Rumors of a deal between the two companies first surfaced in mid-June. Qwiki fits the general formula for Yahoo acquisitions these days: It's a mobile-first company that costs less than $100 million to buy. Under the leadership of CEO Marissa Mayer, Yahoo has bought about a dozen startups similar to Qwiki.
Yahoo's stock was flat in after-hours trading following the news.