Google grabs Picnik, complicates relationship with Yahoo
Yes, Virginia, Google has bought Picnik, an online photo-editing website. And as you can see from the picture at the above blog, the Picnik employees are jumping with joy :) Google had previously purchased Picasa, a stand-alone photo-editing software application, and then decided to offer it to everyone in the world for free.
But why exactly would Google buy Picnik? Obviously we can't expect them to tell us upfront :) So it is speculation time! Thomas Hawk speculates that this could be part of a bigger plan that involves Picasa and the new Buzz social service. He also points out that this acquisition has created a rather awkward situation for Yahoo-flickr.
Further Reading and Reactions
+ Tech Crunch asked Google and Yahoo about the "awkwardness" of using Picnik on Flickr
+ Perhaps anticipating this move, the Aviary.com editor became free two weeks ago
+ Read Write Web
+ Google official announcement