In the realm of Silicon Valley, it’s common for a company with absolutely no interest in the product of another company to end up buying said company. Confusing? Slightly, but it helps to remember that a company is only as good as the people behind it.
Which is where the term “acquihire” comes in. Obviously a pun, the word simply describes what happens when a larger company purchases a smaller company simply to absorb the talent. And that, ladies and gentlemen, is exactly what has happened over the last few days between Apple and Color, a decently well-known app which has recently been the source of some drama as various sites claimed that it was shutting down.
That isn’t the case: instead, Apple has purchased the company for something like $5 million dollars, according to All Things D:
What’s really happening is that Color’s engineering team — about 20 people, comprising almost the entire company — is being “acqhired” by Apple at what’s being called a “nominal” price of something like $2 million to $5 million, according to multiple sources familiar with both sides of the situation. To repeat, there are no “double-digit” millions involved, according to many people familiar with the deal.
Apple is not buying Color’s technology, intellectual property, domain names or liabilities. Those are being left with the company, which still has considerable cash in the bank — something like $25 million — and is going to be wound down.
So there you have. The CEOs of their respective corporations refused to comment, but this seems to be confirmed – after all, All Things D has spectacular sources in the Silicon Valley world.