Screen shot 2010 03 01 at 20.30.27 300x100 Google acquires photo editing startup PicnikPhoto-editing start-up Picnik is reporting on its blog that it has been acquired by Google.

Picnik is a service that allows users to “make their photos fabulous” with a set of editing tools that include effects, fonts, shapes, and frames.

In a blog post today the firm writes:

“We’ve just been acquired by Google! What does this mean for Picnik? It means we can think BIG. Google processes petabytes of data every day, and with their worldwide infrastructure and world-class team, it is truly the best home we could have found.

Under the Google roof we’ll reach more people than ever before, impacting more lives and making more photos more awesome.”

What will Google do with Picnik? Injure Flickr?

Picnik’s photo editing tools are already incorporated into both Google’s photo-sharing service Picasa and Yahoo’s rival Flickr as well as Facebook. Could Google use this opportunity to cut a chunk out of Flickr by withdrawing Picnik from Yahoo’s service and keeping it Picasa-exclusive?

UPDATE: Google has confirmed the acquisition and noted:

“We’re not announcing any significant changes to Picnik today, though we’ll be working hard on integration and new features. As well, we’d like to continue supporting all existing Picnik partners so that users will continue to be able to add their photos from other photo sharing sites, make edits in the cloud and then save and share to all relevant networks.”

Does “all Picnik users” include users within Flickr too? Time will tell although they do go on to say: “we encourage you to head to Picnik, import some of your photos from Picasa Web Albums, Flickr or Facebook and try your hand at photo editing in the cloud!”. For now, it’s business as usual.