Yesterday, The Next Web reported that Apple was acquiring Color Labs, the video streaming service and app founded by Bill Nguyen, who was the creator of Lala Media. Lala Media was acquired by Apple in late 2008.
AllThingsD now provides clearer information regarding the situation. The report reveals that Apple is only acquiring Color’s 20-member engineering team for a relatively small sum. Apple is reportedly bringing Color’s engineers on board to work on cloud-related projects.
What’s really happening is that Color’s engineering team — about 20 people, comprising almost the entire company — is being “acqhired” by Apple at what’s being called a “nominal” price of something like $2 million to $5million, according to multiple sources familiar with both sides of the situation. To repeat, there are no “double-digit” millions involved, according to many people familiar with the deal.
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.
Apple and Color have yet to comment on the deal.