Rochester, NY -- Last Tuesday Kodak began a new chapter in their history. They have simplified their structure as part of an ongoing moving away from photography and imaging towards printing. The Recycler, reported that this move last week caused Kodak’s stock to jump up 20 cents (almost doubling its previous close of 36 cents) a share.
Under the new structure, Kodak has incorporated the film portion of the company, leaving it with two operating units instead of three still under the direction of CEO Antonio Perez. Another analysis firm, Industry Analysts, thinks that while it may help Kodak stay afloat for now, it ultimately will not be enough to get Kodak turned fully around.
Perhaps with this change, another OEM vendor would be interested in acquiring Kodak. It likely would not be HP, as CEO Meg Whitman already has publicly stated that there would be no more major acquisitions planned in the future. HP instead is going to focus on their internal operations and grow their business organically. Whether anyone else will step in and make an offer, remains to be seen. Kodak will not comment publicly on any plans to file for bankruptcy.
In addition to their reorganization, Kodak has also begun patent litigation against HTC, Apple, and Fujifilm for their alleged infringement of digital imaging patents that Kodak still has the rights to. If the courts rule in favor of Kodak, it could also buoy Kodak forward a little longer and buy them time they need to turn their printers profitable. Kodak has current licenses for the patents in question with LG, Motorola, Samsung, and Nokia and have received compensation for them.
According to Kodak’s Chief Intellectual Property Officer, Timothy M. Lynch, “‘Kodak has long been in discussions with Fujifilm, asking the company to do what more than 30 other companies have done already and take a license for their use of our pioneering digital imaging technology. Kodak has invested hundreds of millions of dollars in developing this technology.’”
