The online photography and custom photo store Shutterfly has been lurking around Kodak for the last few weeks. Having filed for bankruptcy in January, Kodak’s intellectual property and other assets have been up for grabs to the highest bidder. With very little interest thus far, Shutterfly may just be the winning bidder.
Picture Perfect Deal
Proposing to buy Kodak for $23.8 million, Shutterfly is sure to gain significant growth in the industry. Although Shutterfly already has a large and loyal customer base, they stand to gain nearly 2 million active customers from Kodak alone. Predicted to add 15 cents or more per share, Shutterfly’s earnings after the buyout are certain to bump their share even higher. In fact, their stock has already seen a boost as the result of the Kodak purchase, raising to nearly $30 a share.
The sale of Kodak and it’s corresponding property are still pending in bankruptcy court, but the talks of Shutterfly’s bid have already had some dramatic effects. For now, Shutterfly will have to wait until the final bankruptcy court hearing on April 30th to find out whether they won the bid and will be moving forward with the deal.
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