The Next Web reports that Apple may have acquired struggling startup Color Labs founded by Bill Nguyen.
The Palo Alto based startup generated a lot of controversy last year after raising $40 million in funding for its location-based social photo-sharing app for the iPhone and Android, which had received mixed reviews.
In fact, yesterday Venture Beat reported that Color’s shareholders and board voted last week to shut the business down.
The Next Web now reports:
We’ve heard through trusted sources that the startup was nabbed for a price that is in the ‘high double digits’, as in millions, and that the deal is ‘done’, though papers have yet to be signed.
The Next Web speculates that Apple may have acquired the struggling startup for its patents:
As to why they’d want Color Labs? We would look to Color’s patents, which may include ones for a file format that they were working on to record HD video. Or it’s software engineering team, if Apple was impressed by their work.
Color Labs is not the first company founded by Bill Nguyen to be acquired by Apple. Back in 2009, Apple had acquired Lala, the streaming music service also founded by Nguyen.
Interestingly, Nguyen had revealed that Color was named as a tribute to Apple’s color logo from the Apple II, as the computer had changed his life when he was seven years old.
Apple and Color Labs are yet to confirm the deal.
[via The Next Web]