Kodak Sells Photo Sharing Site to Shutterfly

Troubled camera maker Eastman Kodak has agreed to sell its moderately popular online photo service unit to Shutterfly - a Redwood based personal publishing service for reportedly $23.8 million.

With this deal, Kodak, which once happened to be a dominating force in the handheld camera industry, will move one step closer to re-launching itself as a much slimmer entity and will be focusing on retail and destination photo solutions along with home printing products.

According to Kodak, the deal was awarded to Shutterfly after the Internet based publishing outfit came up with a "stalking horse" bid.

Meanwhile, Shutterfly has announced that it is going to shift all US and Canada based Kodak Gallery customer accounts as well as images to Shutterfly. Those customers, reportedly more than 75 million, who do not want to transfer their images to the new platform will be allowed to opt out from this transition, the company clarified.

Expressing his views on the latest revival attempts undertaken by Eastman kodak, bankruptcy lawyer Edward Neiger stated: "Kodak, the debtor, is under pressure from various creditors and constituents to liquidate its non-essential assets sooner rather than later," as reported by Reuters.