Update: Samsung has responded to TechRadar, suggesting that the wheels for a sale are very much in motion. It said: "We are currently reviewing many plans, including the sale, but nothing has been confirmed yet."
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Samsung is reportedly looking to sell its e-ink company Liquavista to Amazon, suggesting that future Kindles could inherit a colour e-ink display.
Liquavista's "electrowetting" display provides the e-ink look while adding colour that would potentially allow for full internet browsing and video playback.
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Researcher HIS predicts that E-reader shipments will drop 27 per cent this year, which is probably some of the thinking behind Samsung's decision.
Samsung acquired the Liquavista company in 2011, however the source said that Samsung was making the sale after its acquisition of the Dutch subsidiary didn't meet expectations.
But introducing a colour-enabled e-ink display could be a big win for Amazon if it introduces it into future iterations of the Kindle.
Many people find reading from LCD screens straining on the eyes, while its current e-ink devices are limited to reading books and news feeds but little else.