updated 02:12 pm EDT, Thu October 18, 2012
Staff hire said to cost several million
Contradicting earlier rumors, Apple may not have moved to fully acquire the social video startup Color Labs. Unnamed sources have told AllThingsD that Apple's interest in the company is limited to the engineering team, which is said to have been acquired for $2 million to $5 million, rather than a complete company buyout worth "double-digit" millions.
The startup specializes in social video technology, including a live video app for Verizon's Android offerings and a silent mobile video utility for Facebook. Earlier reports suggested Apple was eyeing Color Labs' patents and patent applications related to HD video compression, GPS location services and social sharing.
Color Labs founder Bill Nguyen is no stranger to Apple acquisitions, having founded a music streaming service, Lala, which was bought by Apple in 2009. The latest report suggests many Color Labs employees no longer view Nguyen as a fit leader for the company, as internal rumors focused on allegations that he was siphoning company money for personal use.
Apple and Color Labs have yet to officially comment on the persistent rumors.