The amount of the deal was not disclosed.
Co-founded by CEO Doug Imbruce and Louis Monier, Qwiki recently launched an app for the iPhone and iPod touch, which automatically creates short movies from events captured on the Camera Roll, combines them with a song from the iTunes library, and then applies dynamic captions, layouts and pacing.
Users have included Lucky Magazine, Big Beat Records, charity: water, Mr. and Mrs. Smith Hotels, Atlantico Rum, as well as bloggers and other personalities.
Following the acquisition, the Qwiki app will live on as a standalone entity inside Yahoo! where the team will continue to work in.