How does this work now?

I just read that picnik (the online image editing software) has been purchased by Google. What makes this confusing is that picnik is the image editing software you access when working within Flickr and Flickr is owned by Yahoo!. Google owns Picasa which has free desktop image editing and storage software that links with Picasa online. So, why did Google need picnik and what happens to picnik availability through Flickr?

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