Kodak struggles to reinvent itself for digital age

Eastman Kodak appears to be staying clear of bankruptcy proceedings for now, but time is clearly running out for the 130-year old industrial icon to reinvent itself for a digital century.

Kodak stock, which had fallen into penny-stock territory Friday on published reports of an imminent Chapter 11 filing, rebounded yesterday to close at $1.34, a gain of 90% on the day after the company strongly denied the stories.

“Kodak is committed to meeting all of its obligations and has no intention of filing for bankruptcy," the company said in a statement after news that it had hired legal advisers in connection with a possible restructuring.

“It is not unusual for a company in transformation to explore all options and to engage a variety of outside advisers, including financial and legal advisers," the company said in its statement.

In any case, with Kodak teetering on the precipice, there is wide consensus the imaging company which has been around since President James A. Garfield needs to reinvent itself to survive.

Kodak grew into a global colossus on the strength of its film business, popularizing the technology beginning in 1900 with its Brownie camera, which sold for a dollar (film was 15 cents). A few decades later Americans' love affair with pictures grew deeper with the launch of Kodachrome color film. Kodak also expanded into TV and movie film products as well as medical imaging, but for generations of Americans, the name Kodak was synonymous with snapshots of milestone moments and memories.
Ironically Kodak also pioneered the digital camera that was the beginning of its undoing.

For now, Kodak is pinning its short-term hopes on selling a cache of 1,100 patents that have already borne fruit for it; the company has extracted nearly $2 billion over the past few years in licensing fees from companies in the smartphone business and is in litigation with Apple and BlackBerry maker Research in Motion over another $1 billion in licensing fees. A buyer could use the patents or earn additional royalties on them from manufacturers of multifunction devices that are replacing standalone digital cameras.

More at the Bottom Line.

Comments

A Leaf In The Wind said…
Do you have the video on Kodak from NBC Nightly News on Oct 13? Seems it was taken off. Thanks.

K
October 14, 2011 at 1:48 AM
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