Eastman Kodak Co. have, according to reports come very close to finalizing a deal with popular Internet-based personal publishing service, Shutterfly Inc. The veteran imaging brand announced that they would be selling their online photo service to Shutterfly for $23.8 million. This decision comes close to a month after Eastman Kodak decided to abandon their digital camera and photo frame production business, in the wake of dwindling sales. Reports now confirm that Kodak has “agreed to sell its online photo services business to “stalking horse” bidder Shutterfly Inc.” A 'stalking horse' bid, essentially is a minimal price set, which other prospective bidders have to go above, if they want to secure the deal. As a part of the deal now, Kodak will give away the images and the customer accounts in the U.S and Canada to Shutterfly. Kodak, however is offering the users the choice to opt out of this transition, if they choose to.
Kodak sells its online photo service to Shutterfly
The report further quotes Pradeep Jotwani, President, Consumer Businesses and Chief Marketing Officer of Kodak as saying that the brand wishes to focus on retail and destination photo solutions as well as home printing products, for now. Eastman Kodak's Kodak Gallery was one, rather popular service, which allowed users to “to store and share their own images and create custom printed photobooks, cards and albums.” The service had more than 75 million users. Shutterfly, too has been a rather popular service, boasting of millions of users. The service, according to reports has been competing directly with players like, Hewlett Packard’s Snapfish, Kodak’s EasyShare Gallery and American Greetings’ Photoworks and Webshots brands. Only recently, Shutterfly was in the news, when it bought privately held card design company, Tiny Prints in a $333 million cash-and-stock deal.