14 DAY TRIAL // Kodak is going through very tough times, with bankruptcy filings, the exit from of the camera market and, now, the selling of its online photo services business.
In its continued effort to raise enough funds for a total business reorganization, Kodak has announced an agreement with Shutterfly.
Long story short, the former is selling its Gallery on-line photo services business to the latter.
In exchange, the so-called Internet-based social expression and personal publishing service will give Kodak $23.8 million.
“We appreciate the loyalty of the KODAK Gallery customers in the U.S. and Canada who have entrusted us with their photo memories,” said Pradeep Jotwani, president, consumer businesses and chief marketing officer, Kodak.
“We know how much they value their photos, so we will ensure that a transition is smooth and easy for them, and that their images will be preserved and protected. We are pleased that under this stalking horse agreement with Shutterfly, our customers will continue to enjoy a rewarding on-line photo experience.”
Customers are assured that their photos will stay secure during the transference of ownership. Nevertheless, those who want to opt out of the transition process will be allowed to do so if they don't want them transferred to Shutterfly.
Those people will get to freely download or buy DVDs from Kodak gallery if they wish to retrieve the pictures.
“This sale is consistent with our objective of focusing Kodak on a core set of businesses in which we can most profitably leverage our technology and brand strengths, and provides a well-proven mechanism for ensuring that Kodak receives maximum value from these assets," said Pradeep Jotwani.
“KODAK Gallery is a unique property, with more than 75 million users, and an ability to attract new members through innovative customer offerings such as its category-leading popular mobile apps.”