"After decades of churning out untold millions of little yellow boxes of camera film, Eastman Kodak Co. is saying goodbye to the still photography business.
The company synonymous with photography said Thursday it is putting a batch of businesses up for sale, including more than 100,000 photo kiosks installed at retailers around the globe and its professional and consumer still camera film operation.
“These are attractive, market-leading businesses with great teams of employees and products,” CEO Antonio M. Perez said in a phone briefing with reporters. “We believe they have good long-term prospects.”
“These are not easy decisions,” Perez said, adding that selling the businesses was motivated in part by the need to satisfy creditors of the bankrupt company.
Kodak’s fortunes for much of its history revolved around camera film, with the company in 1885 rolling out Eastman American Film, the first transparent film negative. And the sale follows Kodak’s announcement in February that it was shuttering its digital camera business. That unit is to close by Sept. 30.
The latest sales add to the growing list of operations the Rochester icon has unloaded in the past year. In the months leading up to the Chapter 11 bankruptcy filing in January, Kodak sold its CMOS and CCD sensor businesses and its microfilm business. Since the filing, it has sold the Cinesite special effects business and Kodak Gallery.
Perez’s decision to sell the still film and photo kiosk businesses marks a 180-degree turn from just a few weeks ago. When Kodak gave creditors a rough sketch of its post-bankruptcy business plan, it included the personalized imaging unit, of which the still film and kiosk businesses are parts. Kodak estimated at the time that the personalized imaging business would generate $1.1 billion in revenue this year.
Also up for sale are Kodak’s document imaging business, which is primarily document scanners; its silver halide paper business; and its specialty imaging business, which primarily does souvenir photos at events and theme parks.
"Kodak’s fortunes for much of its history revolved around camera film, with the company in 1885 rolling out Eastman American Film, the first transparent film negative."
Sloppy reporting by The Democrat &Chronicle,newspaper in Rochester.
George Eastman invented flexible film,an invention that had many others trying to do.Eastman Kodak was born!
The word 'Kodak' has no meaning,Eastman
just liked the sound of it.
D&C paper,Owned by Frank Gannett,the company became Gannett Corp.publisher of Today newspaper,and holder of radio and tv properties.
Gannet was a poor boy who became a millionaire.I caddied for him once,at Rochester Country Club. He was so tight and unfriendly,that many caddies refused to be his caddy.
Here is an interesting true story.Gannett called the caddyshack,asking that his golf bag be brought to the clubhouse and be put in the trunk of his Cadillac'.
A caddy went over with the bag, put it in the trunk,wherupon Gannett reached into his pocket as if to tip the caddy--he came up with a 5-cent package of Wrigley Gum,and handed the caddy a 1-cent stick of gum. The caddy threw it in Gannetts face,and was banned from caddying there.If anyone knows a better tightwad story,please post it.
"Kodak (EKDKQ, Fortune 500) spokesman Christopher Veronda declined to put a dollar value on the assets for sale. When asked if Kodak has received any bids, he said the sale process is just beginning. "
"My only shock is that they didn't try to sell it five or 10 years ago, when it still had value," said Michael Holt, a photo industry analyst for Morningstar, referring to the film portion of the business.
But the problem is, who will they sell to?
"Apple Inc. (AAMRQ) is appealing a bankruptcy judge’s ruling in favor of Eastman Kodak Co. that blocked the iPhone maker’s claims to two patents.
Apple said in a court filing Aug. 22 that it is challenging U.S. Bankruptcy Judge Allan Gropper’s decision that gave Kodak a partial victory in a lawsuit over ownership of 10 patents.
The assets are in a portfolio of patents that Kodak put up for sale as part of its bankruptcy restructuring. The Rochester, New York-based company sued Apple after the Cupertino, California-based company asserted claims to the patents.
Gropper ruled in favor of Kodak on two of the patents. The judge denied the company’s request for a pretrial ruling known as summary judgment on the eight others and said Kodak could renew its request.
The case is Eastman Kodak Co. (EKDKQ) v. Apple Inc. (AAPL), 12-01720, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
"At this point, the sale of the digital imaging patent portfolio is up in the air. Kodak said yesterday that it's still holding discussions over the sale but that it's made no decision and may even decide to hang onto the portfolio to use as "an alternative source of recovery for creditors."
We have to imagine Kodak is stating they are willing to sell all these businesses inorder to convince the bidders that Kodak can emerge without selling the Patents.
Seems to me Kodak is putting on the pressure in the final hour.