March 1 (Bloomberg) -- Eastman Kodak Co., the photography pioneer reorganizing in bankruptcy, agreed to sell its on-line photo services to Shutterfly for $23.8 million.
Accounts of Kodak Gallery’s 75 million users in the U.S. and Canada would be transferred to Shutterfly under the agreement, which is subject to competing bids at an auction, Kodak said in a statement today. Kodak Gallery allows users to upload photos, organize galleries, order prints or photobooks, and share pictures.
“This sale is consistent with our objective of focusing Kodak on a core set of businesses,” Pradeep Jotwani, Kodak’s president of consumer businesses and chief marketing officer, said in the statement. The company said it will seek approval of an auction procedure by late March.
Kodak will give customers who don’t want their photos transferred the opportunity to opt out, according to the statement. Those customers would retrieve their photos through free downloads or by buying DVDs from Kodak Gallery.
Shutterfly, based in Redwood City, California, and founded in 1999, offers similar photo-related services and products such as prints and galleries. Kodak, based in Rochester, New York, is focusing its consumer business on retail and home printing products, according to the statement.
The case is In re Eastman Kodak Co., 12-10202, U.S. Bankruptcy Court, Southern District of New York (Manhattan)
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