Apple Only Acquiring Color's Engineering Team
It was previously reported
by The Next Web
that Apple was finalizing a deal to acquire Color Labs, the video streaming service and app founded by Bill Nguyen. The report stated that the deal had not been finalized but was likely to be inked. The folks over at AllThingsD
now provide more info about the situation revealing that Apple is only acquiring Color’s 20-member engineering team for a much smaller sum than what was stated before.
So what’s really happening? Apparently about 20 people, which consistent of almost the entire company, is being acquired at what Apple is calling a “nominal” price of something like $2 million to $5 million, according to multiple sources who claim to be familiar with both sides of the situation. This means that there are no “double-digit” millions involved according to many people who seem to be familiar with the deal.
Apple doesn't seem to be buying Color’s technology, intellectual property, domain names or liabilities. All of these things are being left with the company, which still has a considerable amount of money (roughly $25 million) in the back. The Cupertino California company is reportedly bringing Color’s engineers on board to work on cloud-related projects. Both Apple and Color have not comments on the deal though.