Yahoo has splashed out an estimated £26-£33m on the acquisition of Qwiki, the start-up moviemaking app which allows iPhone users to turn photos, music and videos into short films.
It is the latest in a spate of purchases by the internet giant following its buy out of blogging service Tumblr and fantasy sports app producer Bignoggins Productions, part of efforts to compete more effectively with the likes of Google and Facebook.
This has been masterminded by new chief executive Marissa Mayer who also recently oversaw an upgrade to Flickr, giving users 1TB of free storage to host video clips and HD images.
In a statement Yahoo said that it: “… will continue to support the Qwiki app, and the team will join Yahoo! in our New York city office to reimagine Yahoo!'s storytelling experience".