The spending spree continues.
Picnik is a cloud-based photo editing tool. Upload your photos and edit them without needing any software on your computer.
While Google has no immediate plans to make changes to Picnik, but it's easy to see how an online photo editing tool could blend in nicely with Google Docs. That would also make Google's Chrome operating system on say, a netbook, be very attractive. Such computers wouldn't need a ton of storage and could potentially run at high speeds by just needing a browser open - as opposed to a bunch of programs all at once.
Oh - and it might run even faster in test areas for Google's high speed Internet experiment.
The other significance of this buy is that it's the latest item in Google's shopping spree. Here's what else they've added to their collection lately: