Apple's Color Labs Acquisition Involves Only Color's Engineering Team

Discussion in ' News Discussion' started by MacRumors, Oct 18, 2012.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Late yesterday, The Next Web reported that Apple was finalizing a deal to acquire Color Labs, the video streaming service and app founded by Lala Media veteran Bill Nguyen. The report came at the end of a confusing day in which an internal memo indicated that the company was being shut down, only to have the company deny those claims.

    AllThingsD now provides significantly more clarity to situation, revealing that Apple is only acquiring Color's 20-member engineering team for a relatively small sum.
    Apple is reportedly bringing Color's engineers on board to work on cloud-related projects.

    The report notes that there is a significant amount of bad blood between the various parties involved at Color and even Apple, contributing to the mass confusion yesterday about what exactly is happening with Color. Apple and Color have yet to comment on the deal.

    Article Link: Apple's Color Labs Acquisition Involves Only Color's Engineering Team
  2. abhishake macrumors regular

    Jul 14, 2005
  3. GoCubsGo macrumors Nehalem


    Feb 19, 2005
    Serious? This is the best you could come up with?

    I have a feeling that we're going to see a social media YouTube-like site coming from Apple. Between this and Particle, it seems possible.
  4. everything-i macrumors 6502a

    Jun 20, 2012
    London, UK
    Looks like some kind of iCloud based video offering is on the cards, will be interesting to see what they are up to with the recent HTML5 and video acquisitions.
  5. The Phazer macrumors 68030

    Oct 31, 2007
    London, UK
    But designed by an engineering team who don't seem to have ever put together something anyone liked :-(
  6. samcraig macrumors P6

    Jun 22, 2009
    But if Apple releases something designed by the team it will be MAGICAL - no worries, The Phazer :)
  7. JAT macrumors 603

    Dec 31, 2001
    Mpls, MN
  8. Saladinos macrumors 68000


    Feb 26, 2008
    Almost literally. If I were on that team, and Apple paid $2-5M for the team, I'd want a share of that cash.

    Between 20 people comes out to between $100K - $200K each.
  9. Krazy Bill macrumors 68030

    Krazy Bill

    Dec 21, 2011
    I know profits are <cough> tight these days but perhaps Apple can grow the OSX team from 2 people to 3 now?
  10. JAT macrumors 603

    Dec 31, 2001
    Mpls, MN
    The use of the term "acqhired" suggests they get it. Also, those pesky laws about it.
  11. Zunjine macrumors 6502a

    Jun 26, 2009
    There's a difference between a bad product and a bad business model. By all accounts Color's engineering team is packed with talent. The business wasn't sound and this hampered adoption and utility due to frequent, unsuccessful pivots.
  12. KdParker macrumors 601


    Oct 1, 2010
    Is apple getting to big to fail. :)
  13. topmounter macrumors 68020


    Jun 18, 2009
    FEMA Region VIII
    So what you're saying is that... You want to get paid to disembark a sinking ship and board a ship that is not sinking? :rolleyes:
  14. 3282868 macrumors 603

    Jan 8, 2009
  15. ddehr026 macrumors 6502

    May 1, 2010
    I'd venture a guess that a company that has roughly $25M in cash on the books with total employees of <30 is hardly sinking.
  16. paul4339 macrumors 65816

    Sep 14, 2009
    I guess it depends what the deal was and how much the employees got out it... There's not much to stop Apple from saying to all their employees: if all 20 of you quit and join us, we'll give a $150k sign-up bonus to each (maybe throw a million to the company as goodwill, so they won't put up a fuss).

    ... sorta like an employee Groupon: buy all 20 and the deal's on!
  17. tbrinkma macrumors 68000

    Apr 24, 2006
    Not even remotely literally. Color had a software engineering division. These employees worked for that division. Apple acquired the division. These employees still work for that division. (They have the same option to leave during or after the acquisition as they did before the acquisition.)

    The difference between doing things this way and individually hiring the employees amounts to both parties getting to ignore any non-compete agreements the engineers may have signed, and a simplification of the paperwork involved for each employee brought over this way. (At the expense of a single set of additional paperwork for the acquisition itself.)

    It boggles my mind that people either don't understand this (or simply don't know what "literally" means), but feel the need to make broad, unfounded, rediculous statements anyway.


    Given that they supposedly had a $41M initial round of venture capital, if they aren't actively sinking, they certainly seem to be taking on a lot of water. :D
  18. mightymike107 macrumors member

    Aug 26, 2006
    Cambridge, MA
    It's worth mentioning, since I didn't see it elsewhere, that Lala (Bill Nguyen's previous venture) was also purchased by Apple back in 2009
  19. 8ate8 macrumors member


    Nov 9, 2010
    Central Jersey
    Like in yesterday's news post perhaps...
  20. Saladinos, Oct 18, 2012
    Last edited: Oct 18, 2012

    Saladinos macrumors 68000


    Feb 26, 2008
    Erm... I know exactly what 'literally' means.

    Apple didn't buy the company - none of its products or fixed assets were of value. What was valuable were the people. If those people didn't want to move and quit, the division would have no value. Those people don't belong to the company; they have no obligation to remain with that division.

    Apple is quite literally paying for the people. It's their personal qualities and talents that give the division such a high value. Like I said, if it were me I'd want some personal reward for my personal contribution to that sales price. I think that would be much, much fairer than the alternative.

    Actually, your notion that non-compete agreements are valid in California is 'rediculous'.

    None of those special situations apply here. In fact, several SV companies (including Apple) have been investigated for so-called "anti-poaching agreements"; essentially gentlemen's agreements that have the same effect as a non-compete. These practices are extremely detrimental to employees and the economy in general (like anybody needs less freedom to find work). They're illegal almost all over the globe.

    As regards exception #3 (here), it expressly states that these you must agree to a non-compete "upon or in anticipation of a dissolution of, or the termination of [your] interest in, a limited liability company"

    Anyway, it isn't my problem. Would that it were.
  21. illegalprelude macrumors 68000


    Mar 10, 2005
    Los Angeles, California
    I wonder why there is "bad blood" between the two companies
  22. Renzatic Suspended


    Aug 3, 2011
    Gramps, what the hell am I paying you for?
    Now that Apple has bought the greatest color team in the industry, they'll get to work inventing a new color, fyornk, that'll be the most innovative, magical color in the rainbow.

    Samsung will, of course, copy. But all they'll be able to produce is a cheap off-yellow color that only poor people will buy.
  23. Boatboy24 macrumors 6502a

    Nov 4, 2011
    1 Infinite Loop
    Yep. Think about how shared photo streams work in iOS 6. As soon as I saw that, I thought they might be moving in that direction. Hopefully, it'll be better and more useful than Ping. :p
  24. MacinDoc macrumors 68020


    Mar 22, 2004
    The Great White North
    ROFL - your post made my day!
  25. Dorje Sylas macrumors 6502

    Jun 8, 2011
    Sorry, this made me laugh. I'm assuming a note of sarcasm, correct? Apple has "magically" botched online and cloud things before. It's one of their weakest areas in the whole UI world.

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