Kodak to Exit the Consumer Photo Market

Say goodbye to the little yellow boxes. Once the leader in consumer film and cameras, Kodak intends to leave the consumer photographic market for good. On August 23, 2012, in a change of position from just a few weeks ago, Kodak announced its intention to sell its “personalized imaging” and “document imaging” businesses.

“[This is] an important step in our company’s reorganization to focus our business on the commercial markets.”
— Antonio Perez, CEO, Kodak, August 23, 2012

On the block are businesses that sell:

• Traditional off-the-shelf print film
• Photo kiosks that develop photos
• Souvenir photos at theme parks
• Silver halide paper

Previously sold:

• CMOS and CCD sensor businesses
• Microfilm business
• Cinesite special effects business
• February 2012: picture frames
• April 2012: Kodak Gallery photo-sharing website sold to Shutterfly for $23.8 million

Not for sale:

• Consumer inkjet printing
• Motion picture and television film
• Specialty chemicals

“The sales would leave Kodak selling consumers only inkjet printers, and film just to commercial customers including the movie industry.”
—Bloomberg Businessweek

The announcement was spurred by a change in the sale of 1,100 imaging patents. The anticipated price seems to have been reduced, and they may not get sold. Since Kodak needs $700 million to pay its creditors before it can exit bankruptcy, new cash sources are needed. The goal is to emerge as a leader in commercial printing.

“We have to make tough choices to build our future and this is one of those choices. ”
— Antonio Perez, CEO, Kodak, August 23, 2012

Sourcs: Wall Street Journal, Reuters, USA Today.