Yahoo announced on Tuesday that it has acquired mobile story-telling app, Qwiki, for a reported $50 million.

The iOs app turns pictures and videos from events users capture into brief movies to share. Users can rearrange, add, or remove pictures and videos, customize captions, select a filter, and edit the pre-selected soundtrack with a song from their music library. You can then share the movies on social networking sites.

The New York-based company (another cheer for New York, who recently saw its first billionaire start-up founder!) wrote on its blog:

“It has been extremely rewarding having our products downloaded by millions, and watching the Qwiki community evolve and grow – especially via our most recent launch, Qwiki for iPhone. Seeing the stories that you share through the app inspires us every day.

Thank you for being a part of our story – one which is far from over.  The Qwiki app will live on as a standalone entity inside Yahoo!, where we will grow our thriving community and where our team will continue to work to help you share life’s best experiences.”

Mayor Michael Bloomberg was also kind enough to send Qwiki founders a memo:

“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.”

The founders couldn’t be more happy with what New York has provided for them. “We are proud of the work we’ve done, and humbled by unwavering support from the NY tech community,” they wrote.  “New York is such a big part of who we are, and what we will become.

From users like Lucky Magazine to music label Big Beat, it’s clear that Qwiki has something to offer; what is unclear is whether Yahoo, who has been notoriously quick to snatch up a startup, can take them to the next step.

Qwiki has come a long way within a short timeframe. When it was first launched in January 2011, it was an iPad application that created video summaries of search terms. It was named the Best Search and Reference Application by Apple in 2011. Time Inc. also recently named it one of “10 NYC Startups to Watch” for 2013.”

According to Crunchbase, the company has raised $10.5 million to date. With the Yahoo acquisition, the app will continue to remain supported and the team will move into Yahoo headquarters.