Shutterfly stock UP on Eastman Kodak deal!
The Cheshire Cat Photo™ Pro Gallery is on Shutterfly® (based in Redwood City, California). Shutterfly®’s stock climbed today after the company emerged as the ONLY (thus, the likely WINNING) bidder for Eastman Kodak’s online photo services business. Kodak filed for bankruptcy protection in January. Pending the final approval by a bankruptcy court, Kodak’s business will be Shutterfly®’s for $23.8 million.
Shutterfly® offered to buy Kodak Gallery in early March, after Eastman Kodak Co.’s Chapter 11 filing. Other bidders had until April 20 to come forward. A final hearing on the deal, in bankruptcy court, will be held on April 30.
Analyst Shawn Milne of Janney Capital Markets predicted that the deal might add 10-15 cents per share to Shutterfly®’s earnings this year, and 20 cents per share in 2013. In 2011, Shutterfly® earned $14 million, or 40 cents a share.
Kodak says that their service has over 75 million users, which likely refers to all of those who have REGISTERED for the service. Like Shutterfly®, Kodak’s gallery allows users to upload photographs and order prints of uploaded photos. Such services are still profitable, but have lost some “photo-sharing” to social networks like Facebook.
Kodak has narrowed its focus to its core printer business, having announced in February that it will get out of the camera business except for a few disposable “point-and-shoot” cameras. Kodak has also tried to sell its collection of patents and has until June 30 to create a procedure to sell them. No buyers have emerged so far. My hunch is that the reluctance is merely to drive down prices.
Shutterfly® stock rose $1.57, or 5.4 percent, to close at $30.58. Although the stock is down 45% over the past 12 months, it has gained 34 percent in 2012.
-Bill at
Cheshire Cat Photo™ – “Your Guide to California’s Wonderland™”
You can view higher-resolution photos at the Cheshire Cat Photo™ Pro Gallery on Shutterfly™, where you can also order prints and gifts decorated with the photos of your choice from the gallery. The Cheshire Cat Photo Store on Zazzle® contains a wide variety of apparel and gifts decorated with our images of California. All locations are accessible from here. LIKE Cheshire Cat Photo on Facebook here! If you don’t see what you want or would be on our email list for updates, send us an email at info@cheshirecatphoto.com.
