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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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RE: WiFi or 3G
By EricMartello on 1/2/2012 5:19:10 PM , Rating: 2
quote:
The big problem with a digital camera is you need a computer to get your pictures onto Flickr and your video onto Youtube.


You are right about saying that Kodak should have been going for the cellphone camera market, but you're missing the point and misinterpreting what you see there on Flickr.

The iphone is not a popular camera; it's a popular communications device that has the ability to take pictures. In other words, if it ONLY took pictures and was just as easy to use, it would not have gained its popularity. If the samsung galaxy became the most popular phone, it would probably start replacing the iphone as the "most popular camera" based on that flickr graph.

Since smartphones can take pictures and are REQUIRED to have a data plan, people are more likely to upload the pics they take. The iphone is the most popular smartphone for now, so that's why it's topping the graph.

Cameras with integrated wifi have been tried before - they never caught on. I believe there still are some cameras on the market that do offer WiFi...but a camera with 3G would be a bad idea. Who is going to want to pay a monthly fee for a camera alone? Very few people would.

The reason is simple. If you are using a camera, you care about quality. If you just want to take snapshots then something like an iphone is good enough...but if you're actually interested in getting creative photographic results you are going to need to get into DSLR type cameras...and most people who make that decision don't care about 'consumer' features like the "wifi button" or "email to grandma" feature.

Kodak's best play would have been to develop/purchase lens & sensor tech, then license said tech and branding to cellphone makers...similar to the way Zeiss licensed their brand to Logitech for some of their webcams.


"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay














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