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Eastman Kodak Co. has inked an agreement for the proposed sale of some assets of its Kodak Gallery online photo business to rival Shutterfly Inc. for $23.8 million.
The terms of the agreement include the transfer of Kodak Gallery customer accounts and images in the United States and Canada to Shutterfly. The agreement comprises the initial, stalking horse bid in a Bankruptcy Court-supervised auction process, Kodak said late Thursday. The process is aimed to ensure the sale brings the maximum value.
The deal calls for Kodak to seek U.S. Bankruptcy Court approval of sale and auction procedures by late March. Kodak filed for Chapter 11 bankruptcy on Jan. 19.
“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, president of the consumer businesses and Kodak’s chief marketing officer.
Jotwani said Kodak is focusing its consumer business on retail and destination photo solutions as well as home printing products.
Kodak Gallery has more than 75 million users, the company said.
The publicly traded Shutterfly is based in Redwood City, Calif.
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