Report: Apple Picks Up Color Labs Startup

Color Labs, a much-hyped mobile photo sharing and social networking app last year, has reportedly been acquired by Apple.

Citing trusted sources, The Next Web reported last night that Cupertino has purchased Color Labs for a number in the "high double digits" and that the deal is all but signed.

The blog said Color founder Bill Nguyen had a falling out with the company's board several months ago. But even before that, he was reportedly looking for a way to sell the company, and approached Eddy Cue, Apple's senior vice president of Internet software and service.

Nguyen already had a relationship with Apple; the company his Lala streaming music service for $80 million in December 2009, raising hopes for an iTunes-based streaming subscription service. It was in May 2010.

Around the time it picked up Lala, Apple told The Boston Globe that the Cupertino "buys smaller technology companies from time to time and we generally do not comment on our purpose or plans."

Neither Apple nor Color Labs immediately responded to PCMag's request for comment.

Before news of the Apple acquisition emerged, there were several reports that Color was shutting down, but the company denied it.

Color Labs has undergone various reincarnations, starting as a proximity-based photo sharing app, before . In May, it to let users share videos via Facebook, Android, and iOS.

The startup's patent portfolio may be the focus of Cupertino's acquisition, TNW pointed out, citing one for a file format to record HD video. The company allegedly had six patents pending when it raised $41 million in pre-launch funding, including ones titled "Sharing Content Among a Group of Devices," "Sharing Content Among Multiple Devices," "User Device Group Formation," and "Storage and Distribution of Content for a User Device Group."

Snagging these patents before Google has a chance to may also be a driving factor for Apple, Forbes said. The search engine company offered $200 million to pick up Color before it launched, but Nguyen turned it down.

For more, see PCMag's about his plans for Color, as well as . Also, check out PCMag's review and the slideshow below.