On Tuesday, the web giant bought the app, Qwicki, according to a blog post. The app allows Apple iPhone owners to transform photos, music, and videos into slideshow videos.
Yahoo did not officially disclose the price they paid of Qwiki, but sources at AllThingsD stated that the New York startup went for around $40-50 million. Just earlier this week, Yahoo bought Bignoggins Productions, a smartphone app for managing fantasy sports teams. Since Marrissa Mayer was hired a year ago, Yahoo has absorbed 15 startups, including three since May, when it bought the blogging service Tumblr for $1.1 billion.
Yahoo announced the acquirement yesterday on its Tumblr page:
"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."
Qwiki also shared the news on its blog, and gave praise to the the city of New York:
"We are proud of the work we’ve done, and humbled by unwavering support from the NY tech community. New York is such a big part of who we are, and what we will become."
The Mayor's office was kind enough to send over the following:
“Qwiki is a great example of the momentum in New York City’s booming tech sector," said Mayor Michael R. 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.”
This is the type of relationship between City Hall and the tech community that Boston is hungry for. The East Coast competition between New York City and Boston for attracting startups is nothing new, but this is one example of good behavior between the government and business community. Keep in mind that the Big Apple hasn't always been the friendliest to startups before, like when the city cracked down on Airbnb and RelayRides for violating state codes in May, as Wired points out. The Hub isn't innocent either. As we noted back in October, Boston's city officials became overly involved in property regulations, which pushed startups out of the Kendall Square area this fall. But despite the cities' past foibles and their respective differences in industries, both New York and Boston–and all budding business areas–have a similar need for a transparent rapport with City Hall, based on cooperation and mutual appreciation.
Will an outstanding mayoral candidate be able to change the relationship between local government and startups for the better? Here's what the candidates had to say to the tech community.
