Color Labs recently denied that it is closing its doors after the photo- and video-sharing app failed to become popular. However, reports suggest that Apple may have acquired the start-up.

Web site Next Web, citing a source , reported that Apple acquired the start-up for a high double-digit price in millions. Apparently, the deal is nearly through (apart from signing papers), but an announcement date is not known.

"From what we know, founder Bill Nguyen has been away from the office for three months, after a period of intense strain between him and the board," stated Next Web.

The Web site further added that Nyugen was looking to sell the company even prior to his relationship with the board souring, and he had sought out Apple's Eddy Cue, SVP Internet Software and Services. Consequently, Nguyen developed app prototypes, though none were then accepted by Apple.

A return of the $41 million of pre-release funding will be received due to the deal, though a loss will seemingly be made regardless.

The Next Web thinks the deal happens because of Color's patents, particularly one regarding recording high definition video. A patent named "sharing content with other devices" also surfaced. The report opines that Photo Stream, where photos are shared across devices, could see the features, perhaps in iOS 6 or the next-generation of iOS.

Color grouped apps together in nearby locations and then moved its focus to sharing video via Facebook. The aforementioned $41 million investment, for a then unproven company, also drew controversy.

The circulating reports do not confirm where Nguyen will go within Apple; it would be surprising if Apple acquired the company, and its patents, and let the talent go afterwards.

Apple and Color are yet to confirm the news. Apple is no stranger to acquiring small companies of talent: the company acquired Siri before the current version of Siri, the voice-activate personal assistant, released.

In 2011, Color Labs bought two domain names for a combined $500,000: Color.com and Colour.com. The latter directs to Color.com, revealing the company's new focus on sharing video.