When someone offers an application developer 41 million dollars, everyone in the tech sector takes notice, especially when it’s for an application that was already stumbling mightily. Color, the company that raised 41 million dollars from investors to relaunch and rebrand their application last September (2011), has decided today to shut down the application’s development. VentureBeat is reporting that the company’s board and shareholders voted last week to close down the service.
Of course, when someone hands you 41 million dollars, there’s a good chance that you get a third, fourth, and even fifth kick at the development can. The company, according to reports, plans on trying something new. We should also note that company co-founder and CEO Bill Nguyen, who also founded the popular music streaming service LaLa (later purchased by Apple), stepped down last month.
Tough break for the people likely to lose jobs, but probably a smart move for the company as a whole. Can you name me one person that uses Color? Please, just one?
Update: TechCrunch has published an article quoting someone at Color who denies that the company, or app, is closing down. TechCrunch doesn’t name the “spokesperson” so we’re not really entirely sure what to believe at this point.