Shutterfly Bids for Kodak’s Online Photo Services Business - wolfgodis1942

George Eastman Kodak, which filed for failure protection in January, has entered into an agreement with Shutterfly for the cut-rate sale of certain assets of its online photo services business for US$23.8 million, information technology said Thursday.

The accord with Shutterfly was delineate A a "stalk 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 center its consumer business on areas much as retail and home printing products, which are businesses that have winsome and maturation sales of consumables.

Shutterfly in Redwood City, California, offers same online services such every bit exposure computer memory, sharing and printing as the Kodak Gallery. The price of the agreement let in the transfer of gallery customer accounts and images in the U.S. and Canada to Shutterfly. A Kodak spokesperson clarified Fri that the gallery web site, public figure, and educated property were not theatrical role of the deal.

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

Kodak is targeting completion of the sale process this spring, and aforementioned that other potential buyers May submit alternative bids, holding retired the possibility that Shutterfly may not be the ultimate purchaser.

The ailing company, which faced challenges in making the transition to digital engineering, aforesaid in Jan that it and its U.S. subsidiaries filed willful petitions for Chapter 11 business reorganisation 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 imagery patent portfolios. It said information technology had more than 1100 U.S. patents that are of import to the digital imaging industry.

Source: https://www.pcworld.com/article/468768/shutterfly_bids_for_kodaks_online_photo_services_business.html

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