Updated with Amazon response and comments from Gartner analyst Allen Weiner.
SEATTLE (TheStreet) -- Hot on the heels of Apple's (AAPL) iPad launch and Google's (GOOG) 'gPad' plans, Amazon (AMZN) may be inching closer to a color and touchscreen version of its Kindle e-reader, if rumors of its acquisition of startup TouchCo are proved correct.
With the next generation of tablet computers doubling as e-readers, consumers will now be able to view books and magazines in color, something lacking on Amazon's popular Kindle.
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