Yahoo has acquired iPhone app startup Qwiki for a reported $50 million. The Qwiki app automatically turns pictures and videos that you already have on your iPhone into movies to share, including transitions and a soundtrack.

The Qwiki app will live on as a standalone entity inside Yahoo, says the company. The Qwiki team will be joining Yahoo’s New York offices.

Yahoo CEO Marissa Mayer was a judge at TechCrunch Disrupt 2010 where Qwiki was chosen as the top disruptive company.

[Image courtesy: Qwiki]