Print 20 comment(s) - last by whereisusa.. on Jan 11 at 3:04 PM

Sell patents, bit a massive loan, or close up shop?

Poor Kodak has taken a beating since the advent of digital photography. Few consumers buy film anymore and Kodak’s line of digital cameras aren’t even close to setting sales records. Kodak is facing a bleak future and has previously stated that it might be forced to close up shop as early as this year if things don't change.
Kodak is also facing growing personnel losses within the company. The firm has announced the loss of a third member from its board of directors in the last week. The latest loss is Laura Tyson who resigned her position on the board of Kodak Thursday. The resignation was confirmed in a SEC filing that Kodak made on Friday.
Tyson is a professor at the Walter A. Haas School of Business at the University of California, Berkeley. Tyson is also a member of President Obama's Economic Recovery Advisory Board and advised President Clinton when he was in office.
Kodak is in such dire financial straits that the firm is looking at possibly selling off patents it holds to stay solvent. It has been estimated that the patents Kodak holds are worth five times the company's current market cap.
The other two directors that left Kodak last week include Adam Clammer and Herald Chen. The two directors were both from a private equity firm called KKR & Co and had been on the board since 2009. 
Reuters reports that Kodak had also warned that it might have to raise $500 million in new debt in lieu of selling patents to stay solvent. Kodak hasn't turned an annual profit since 1997.

Source: Reuters

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By EricMartello on 1/2/2012 5:02:46 PM , Rating: 2
What next? An article telling us that there is less demand for printed media?

Kodak has had PLENTY of time to get in the game, invest into or buy necessary resources to go digital AND promote it effectively.

Their digital cameras have always been middle-of-the-road in terms of quality. My first digital camera was a kodak back in 1999. It took muddy pictures and was big, but at the time it was decent and affordable compared to the few other offerings on the market.

Since kodak has always taken the quantity over quality approach to cameras, they could have developed a sensor for cellphones and licensed it to cellphone manufacturers. Cellphone makers could then add that bullet point on their phones' marketing material and kodak would be raking in licensing fees without having to manufacture anything.

Seems to me all they did was offer mid to low quality digicams with zero marketing effort behind them...and now they're on their way out.

By DoctorBeer on 1/2/2012 5:26:11 PM , Rating: 2
This is true. I can't remember the last time I've seen an ad for a Kodak.

Anyone with a brain could of seen that digital was going to take over... Well maybe we now know who didn't get the memo. ;D

RIP Kodak!

By christojojo on 1/2/2012 9:33:22 PM , Rating: 2
Kodak has been slow and sluggish for at least two decades. Living in Buffalo and not far away from Kodak.s home of Rochester NY. I have followed them hoping they would turn around since my early Twenties. It is sad actually.
I remember asking my ex-brother-in-law, who worked there at the time, about why they are so bad at turning around. His reply was it was all bureaucracy. He quit that place out of frustration for a job with less pay but better environment.
Seeing those three leave makes me think of rats leaving the ship. If they left I would not be surprised that the company has been pilfered already.

By Jeffk464 on 1/3/2012 5:52:20 PM , Rating: 2
Like someone said before kodak was never a strong camera company. The best cameras still come from camera companies, not electronic companies.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain

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