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Haven't there been a handful of startups that are aquihired after announcing they're closing up shop?
I would say that the point is that there is a seed of tech which apple could acquire and put their army of eng on to make something along the same line of what color originally sought to do; Apple-instagram+facetime...

I would think that this is an exceptional acquisition that apple could make: no more color; a battle on instagram, facetime emulation and build upon the social image cloud idea that color started with...

and they wont be bogged down with colors staff - they will own all that color was, not what egos color is.

This makes me think venturebeat are scummy. Why are they being so obnoxious about this? Its sad.
I think they have been getting mega traffic and are milking it.
TechCrunch once said, "it's expensive to be right, it's cheap to be first."

Being first gets you a ton of page views for little work, you don't have to be right. Even being wrong is beneficial these days, since they get to make a big story about the correction too.