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patois
09-18-2012, 04:06 PM
There is a decent article in the British Journal of Photography about Kodak's progress in selling their film division. It contains relatively good news and in my opinion is big improvement over their previous press releases which had been confusing.

http://www.bjp-online.com/british-journal-of-photography/news/2206235/kodak-in-active-discussions-to-sell-its-film-business

Prof_Pixel
09-18-2012, 04:19 PM
It's pretty much what we've talked about elsewhere in the Forum with the exception about some interest being expressed. But I'm reminded of the old saying, 'Show me the money'. Talk comes cheap.

It mentions 'private equity firms' which I guess would also be known as 'venture capitalists'. If Kodak doesn't make it out of Chapter 11, I would expect to see a VC firm pick up the pieces.

Wolfeye
09-18-2012, 04:23 PM
The logical buyer is Fuji, based on them having plenty of experience and interest in the same sort of things Kodak makes. At the same time Fuji already makes an equivalent of everything Kodak. Hard to guess where all of this will land. Nice to know the phone was ringing at least! I think more than a few people assumed there'd be little interest in a declining market item, even if in the short term there's a lot of profit to be made.

Prof_Pixel
09-18-2012, 04:31 PM
Actually, I think Fuji is the LEAST logical buyer. They already have all the Kodak patents they need.

Hatchetman
09-18-2012, 04:32 PM
Private equity would be bad. They would be looking to show paper profits in a couple of years and dump it off to some other unsuspecting fool. We want somebody with a long-term investment horizon.

Prof_Pixel
09-18-2012, 04:36 PM
Private equity would be bad.

I agree. I didn't mean to imply that being purchased by a VC would be good, just likely.

donkee
09-18-2012, 04:38 PM
Kodak is funny. Sell off the divisions that make money to go head to head with Epson and HP. They will lose........

Roger Cole
09-18-2012, 04:52 PM
Kodak is funny. Sell off the divisions that make money to go head to head with Epson and HP. They will lose........

Well, frankly, if they spin off film and the new owners are successful I wouldn't give a damn what happened to the rest of Kodak - except that they are to continue making the film.

Fuji is between unlikely and certainly not interested, I think. We'll see.

Sal Santamaura
09-18-2012, 05:03 PM
Private equity would...be looking to show paper profits in a couple of years...You give too much credit for patience. A couple of quarters, perhaps.

EdSawyer
09-18-2012, 06:33 PM
VC would suck as owners. They are all invariably scumbags.

Felinik
09-18-2012, 06:42 PM
Kodak is funny. Sell off the divisions that make money to go head to head with Epson and HP. They will lose........

In terms of brand positioning, Kodak needs to find and mark a new position on the market. The film biz is probably not interesting for them in a long term perspective, as little development of both products and brand value is possible in a decreasing business. Just because they say it goes good with their film sales, it doesnt mean they make enough money to see a long term increase in the profit from that business.


I'm thrilled to see how this ends, and if Kodak could get a B&W inkjet for professional photo done right, I'd be the first to buy one...

Poisson Du Jour
09-18-2012, 07:20 PM
"The goal, says Olbrich, is to find one buyer that will take on both the Personalized Imaging and Document Imaging divisions, which encompass digital scanners, picture kiosks, souvenir photo products, photographic paper, as well as Kodak's legendary film
businesses."

Sounds like it might fit into the touristy business model of Disneyland.

I'll bet that Fujifilm has a speculative eye on proceedings.

eclarke
09-18-2012, 07:30 PM
Too much corporate mumbo jumbo bullshit..make stuff and sell it..

Gim
09-18-2012, 07:47 PM
That's great. Sounds like an interview I heard recently from a businessman "I don't need a tax break, I need someone to buy my product". Both somewhat fitting.

Jim


Too much corporate mumbo jumbo bullshit..make stuff and sell it..

RattyMouse
09-18-2012, 08:07 PM
Only 3 real options for Kodak film.

1. Fujifilm
2. Ilford
3. Employee buyout.

Anyone else will either be Wall Street hacks or people who have no idea how to run a film company. Private equity would be a DISASTER for Kodak.

Prof_Pixel
09-18-2012, 08:15 PM
Only 3 real options for Kodak film.

1. Fujifilm
2. Ilford
3. Employee buyout.

Anyone else will either be Wall Street hacks or people who have no idea how to run a film company. Private equity would be a DISASTER for Kodak.


I just don't think I see any one of those three having the interest and/or money to pull it off.

BTW, not all VC buyouts are disasters - they would probably expand the market, looking beyond the photographic industry for buyers.

RattyMouse
09-18-2012, 11:23 PM
I just don't think I see any one of those three having the interest and/or money to pull it off.

BTW, not all VC buyouts are disasters - they would probably expand the market, looking beyond the photographic industry for buyers.

VC arent going to have the patience it takes to make film work. Someone said that earlier in this thread. They will demand double digit returns on their investment in a few years maximum. VC would buy Kodak and sell it to a scrap yard if they could make money on it. Anyone thinking that VC is the answer is delusional.

Prof_Pixel
09-18-2012, 11:38 PM
Anyone thinking that VC is the answer is delusional.

I never said the VC alternative was to be desired, just likely if things go into Chapter 7. The County (Monroe) and State (NY) are very interested in making the Eastman Business Park (formally Kodak Park, but with several fewer buildings) work by bring in new industry to the area.

If photo manufacturing still made sense, a VC would work that angle, but I suspect would still look for other business to step in.


All this is highly speculative until next February or so when Kodak passes the Chapter 11 make or break point. A lot has to happen in the next 5 months.

Steve Roberts
09-19-2012, 09:46 AM
The article contains a lot of hype and positive spin, a case of "well, they would say that, wouldn't they?"
Let's see some cash on the table!
Steve

Yashinoff
09-19-2012, 01:41 PM
I'd be extremely surprised if they found a buyer. They're trying to unload a lot of junk by tying it to their valuable name, while they hold onto the manufacturing. I just don't see anybody falling for that deal.

I think the problem is that Kodak is still way too big. They've gotten a lot of flak for all of the lay-offs, but I don't see any way to avoid that. If somebody does step up and buy the personal imaging business they're going to have to axe a lot of people too. I just don't see any company wanting to purchase Kodak's name and then be responsible for dumping the trash, axing everybody, and clean up.

Anyway it goes Kodak is going to be a lot smaller in the future.