Apple to Acquire Media Sharing Startup Color Labs?

According to various media reports, Apple is closing in on a deal to acquire the troubled photo-and-video-sharing social network Color Labs.

Amidst news about the startup shutting down, The Next Web reported 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."

Quoting anonymous sources, the report said the company's founder Bill Nguyen has been away from the office for three months following a period of severe disagreements with the board. It is revealed that Nguyen was in touch with Apple's Senior Vice President Internet Software and Services, Eddy Cue to sell the company.

Using the resources of the Color team, he built several prototype apps to show to Cue and other potential buyers which were later abandoned. However, the new deal believed to acquire everyone at Color, including investors, a return on the initial funding.

Venture Beat, in a story titled "Color goes dark," reported that the company's vice president sent an e-mail to employees saying Color Labs is shutting down its operations.

"I hope is all well with you. As you may or may not have heard, Color is going through a number of changes," the report quoted his e-mail. "Last week, the Board and major shareholders voted to wind down the company. We ask that you politely cancel any existing commitments stating we are closing our [redacted] program."

Color Labs was founded by Nguyen and Peter Pham in 2011 and the company came under severe criticism as it raised $40 million investment last year even before the company had a product. However, they released a photo and video sharing app for Facebook later which failed to draw users. Pham exited just three months after the launch of the product and in its Chief Product Officer DJ Patil did the same one month later.

Apple previously acquired Nguyen's other startup Lala for $80 million in December, 2009.

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