Shutterfly bids for Kodak's online photo services business

The proposed sale is part of Kodak's reorganization of its business after seeking bankruptcy protection

Eastman Kodak, which filed for bankruptcy protection in January, has entered into an agreement with Shutterfly for the sale of certain assets of its online photo services business for US$23.8 million, it said Thursday.

The agreement with Shutterfly was described as a "stalking horse" bid that sets the minimum price for other bids for the business. The competitive bidding in a court-supervised auction will "ensure the maximization of value for the assets", Kodak said.

The company said it will instead focus its consumer business on areas such as retail and home printing products, which are businesses that have attractive and growing sales of consumables.

Shutterfly in Redwood City, California offers similar online services such as photo storage, sharing and printing as the Kodak Gallery. The terms of the agreement include the transfer of gallery customer accounts and images in the U.S. and Canada to Shutterfly. Kodak indicated that the Gallery site is also included in the sale.

Kodak said it will work closely with Shutterfly to ensure a smooth transition for the gallery's customers, and that customer photos will continue to be safeguarded throughout the process. Customers who do not want their photos transferred to Shutterfly can opt out and then retrieve their images through free downloads or by purchasing DVDs from the gallery.

Kodak is targeting completion of the sale process this spring, and said that other potential buyers may submit alternative bids, holding out the possibility that Shutterfly may not be the eventual buyer.

The ailing company, which faced challenges in making the transition to digital technology, said in January that it and its U.S. subsidiaries filed voluntary petitions for Chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

In a bid to raise cash, the company has since July been "exploring strategic alternatives" including the sale for its digital imaging patent portfolios. It said it had over 1,100 U.S. patents that are fundamental to the digital imaging industry.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?