Eastman Kodak has just announced that Shutterfly has made a $23.8 million stalking-horse bid for certain assets of its Gallery online photo services business. After filing for bankruptcy in January, the company revealed that it would phase out its digital cameras, pocket video cameras and digital picture frames businesses.
The terms of the agreement state that Gallery customer accounts and images in the U.S. and Canada will be transferred to Shutterfly.
Kodak CMO Pradeep Jotwani had this to say:
This sale is consistent with our objective of focusing Kodak on a core set of businesses in which we can most profitably leverage our technology and brand strengths, and provides a well-proven mechanism for ensuring that Kodak receives maximum value from these assets.
The companies also noted that they would work closely together to keep the transition of photos and accounts smooth, but users who don't want to use Shutterfly can opt out. If that sounds like you, you can download the images from Kodak Gallery or purchase DVDs.
This story originally appeared in TechCrunch.
