The company is responsible for video compression on the Wii and 3DS.
http://www.nintendoworldreport.com/news/29238
Mobiclip, a company responsible for video codecs (software allowing compression or decompression of digital video) for both Wii and 3DS, is now a subsidiary of Nintendo.
According to one report, the acquisition had taken place in September of last year. There is no word as to how Nintendo plans to use Mobiclip, as the company also carries a focus in general R&D as well as software engineering. On their official website, the company is currently listing a job offer for a console software engineer.
One more question remains in how Nintendo will handle currently existing Mobiclip clients, like Al Jazeera, who uses the service to stream broadcasts to mobile devices.