Color’s Engineering Team Gets Hired By Apple
Yesterday there was a rumor floating around that Color was shutting down. As of last night, there was another rumor floating around that Apple was going to buy Color in the “high double-digits millions.” What is really going on is that Apple is hiring Color’s engineering team of roughly 20 people through an “acqhire” deal. Apple is paying between $2 and $5 million according to sources with AllThingsD.
Apple is not interested in Color’s technology, intellectual property, domain name, or liabilities though. Color has around $25 million still left in the bank. Color raised a total of around $41 million in funding.
Color failed to gain traction and supposedly this is causing a low morale for Color’s employees. AllThingsD reports that the relationship between Color CEO Bill Nguyen, Color’s employees, Color investors, and Apple is rather tumultuous. Color started off as a mobile social network and they raised $41 million in funding from Sequoia Capital and Bain Capital. After that they turned into a video application for Facebook.
Nguyen previously sold Lala to Apple so he has an existing relationship with them. However he has a short attention span and was less involved in Color. Another issue is that Nguyen supposedly used Color’s venture capital funding for personal expenses like ski lessons for his kids. Color’s engineering team will be working on cloud technology at Apple most likely.