REDWOOD CITY (KCBS) – Shutterfly’s stock was up for a second straight day on Thursday after emerging as the likely buyer of certain assets of photo pioneer Eastman Kodak’s online photo services business.
The two companies announced that there were no competing bidders to Shutterfly’s $23.8 million bid. Eastman Kodak filed for bankruptcy protection in January.
KCBS Technology Analyst Larry Magid said Kodak’s online business is much like other photo sharing services like Flickr and Picasso, but they tend to focus a bit more on private sharing.
KCBS Technology Analyst Larry Magid:
The deal still needs final approval by the bankruptcy court. If approved, Shutterfly will work with Kodak to transfer Kodak Gallery’s U.S. and Canadian customers and images onto Shutterfly’s platform.
Magid said it is a sign of the times that a tech startup could purchase an iconic corporation that has been around since “before most of us were born.”
Shutterfly plans to discuss the transaction as part of its Q1 2012 financial results conference call on April 30.
You can hear Larry Magid’s Tech Report Monday through Friday at 3:50pm on KCBS All News 740AM and 106.9FM.
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