Cupertino is rumored to be planning to buy photo and video sharing social network Color Labs.
With Color Labs, a multimedia sharing startup, users can create groups and within those groups, anyone who is within a certain location, can automatically add photos and videos.
Founded in 2011 by Bill Nguyen and Peter Pham, Color Labs raised $41 million from Sequoia Capital and Bain Capital Ventures before its launch.
A report from VentureBeat claimed that the company leaders had “voted to wind down the company”, but Color released statement saying that it was not in the process of shutting down.
The Next Web reports that Apple bought the struggling startup for a price tag in the “high double digits.”
Regarding Apple’s interest in buying Color, the site writes:
“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.”
However, an AllThingsD report yesterday stated that Apple did buy Color for its engineering talent and not actual intellectual property.
“Apple is not buying Color’s technology, intellectual property, domain names or liabilities. Those are being left with the company, which still has considerable cash in the bank — something like $25 million — and is going to be wound down,” the site wrote.