Apple acquires an unsuccessful startup Color Labs

Apple acquires an unsuccessful startup Color LabsIt was said that Color Labs startup became a part of Apple in October, but the evidence of it has become known only recently. Color Labs develops a mobile application to broadcast video to friends in Facebook, but the business is not successful. The purchase price could be about $7M.

According to TechCrunch, 20 engineers from Color Labs went to work at Apple - this is evident from the lawsuit filed by a former Color Labs employee Adam Witherspoon against the startup founder Bill Nguyen. One of the accusations is the claim that the founder of Color Labs did not give Witherspoon the opportunity to get a job at Apple because of personal animosity, while 20 employees got this opportunity.

Color Labs project managed to attract an investment of $41M at the early stage of development. The company released an iPhone-app for sharing photos over the Internet in the spring of 2011. After the launch, it had been downloaded about 1M times, but the number of users became less than 100K by the fall. Color announced the release of the updated application in late 2011 that was reoriented to work with video.

It was also said that Google offered to buy Color Labs for $200M in the summer of 2011, but the leadership of the startup refused.

Apple bought another startup in 2009 created by Nguyen - an online music service Lala. According to Cnet, the iPhone manufacturer paid $80M for this service.