In this day and age it’s become very common for investment firms to back startups that focus on mobile applications. This, of course, is not without merit as Instagram has showed us this can pay off in a big way. Instagram was acquired by Facebook for a massive $1 billion in cash and stock options and get this – it wasn’t even generating any revenue whatsoever. Due to this, it’s no surprise that investors across the board are looking for the next big app. However, while Instagram has largely secured the mobile market when it comes to sharing photos, others are still trying to break into the scene.
After securing a hefty $41 million in startup capital one such competing app, Color has failed to become relevant even after rebooting several times. In fact, things have reportedly gotten so bad as of late that many have said they are simply closing up shop and looking to liquidate their assets. Nothing has been said in terms of exact numbers but it’s generally assumed that the return on investment won’t be even remotely close to the $41 million that was originally siphoned into the company. But, it seems that there may be a light at the end of the tunnel.
Rumors have just begun circulating that Apple themselves have swooped in and bought out Color Lab This has not yet been confirmed but early speculation suggests that Apple is more concerned with the app’s domain name (color.com) and several patents including one that focuses on “Sharing Content Among A Group of Devices”. This shouldn’t come as a surprise, especially considering Color has managed to secure a paltry 500,000 users after several years on the market.
What exactly Apple is looking to do with the software and associated assets, we haven’t a clue. However, if we were to take a guess we would assume that they are looking to make it much easier to share photographs from within iOS than ever before. Perhaps they are even looking to go head to head with Instagram utilizing their own firepower. We’ll have to wait and see.[TheNextWeb]