Yahoo! has acquired New York-based technology firm Qwiki as part of its plans to strengthen its mobile offerings and improve advertising revenues.
Although, Yahoo! has not disclosed the amount, technology blog AllThingsD reports that the deal could be worth between £26m and £33m.
Qwiki is a developer of applications for iPhone that are downloaded by millions worldwide.
Qwiki, in a statement, said: "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."
Michael Bloomberg, Mayor of New York City, said: "Qwiki is a great example of the momentum in New York City’s booming tech sector. 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."
Yahoo!, which is facing tough competition in advertising from its rivals Google and Facebook, acquired blogging website Tumblr in May for $1.1bn. Earlier this week, the company acquired California-based mobile applications developer Bignoggins Productions.
The acquisition of Qwiki is the third for Yahoo! since May this year.
As part of rebuilding the company, Yahoo! appointed former Google executive Marissa Mayer as its new CEO in July last year, redesigned its photo-sharing service Flickr in May this year, and acquired several start ups like Alike, Stamped and Snip.it in the recent times.