But I can't judge as I haven't been closely following the story. Is there any general consensus on the funding as a good or bad idea?

For the record I really like their promo video. It shows off the product with a bit of witty comedy. I just couldn't find myself using it, and I don't know how it'll fit into Yahoo, but definitely a fun app.

I find nothing wrong with hacakathons and acquihires, personally. As for celebrity investors, if a social media startup feels they need that kind of marketing / media attention, good for them.