Report: Amazon Picks Up Small Touchscreen Startup Touchco

Is Amazon (NSDQ: AMZN) acquiring a touchscreen startup? The NYT reports that Amazon is picking up Touchco, a very small startup incubated at NYU Media Research Lab. No response from Amazon but acquiring a company that claims to have less expensive touchscreen tech — even though it never went commercial — and could fit with the Kindle road map makes sense. Touchco’s site carries the message “Thank you for your interest in Touchco. As of January 2010, the company is no longer doing business.” The demos on the Touchco YouTube channel have been deleted.

Touchco’s technology is resistive touch (aka interpolating force-sensitive resistance) and and is far less expensive than the capacitive technology used by Apple (NSDQ: AAPL) for the iPhone and iTouch. According to the Times, which also profiled the company late last year, Touchco will be folded into the Kindle hardware division, Lab126, in Cupertino. Touchco was founded by Ilya Rosenberg and Ken Perlin.

Update: From an Amazon spokeswoman: “We don’t comment on rumors and speculation.”