Following the news, the company's shares fell to 0.46 cents, it's lowest ever. The share price values the company at just $126 million, well below the value of their assets and patents. In 1997, the company had a market value of $31 billion, before the revolution of digital photography began. The company has not had a profit since early 2007 and has been hemorrhaging money.
Eastman Kodak, which released the world's first consumer camera in 1888, is still looking to sell off some of its patent portfolio and a successful deal would keep the company out of Chapter 11 bankruptcy. The company has 1100 very valuable photography and digital photography patents and internally they value the portfolio at around $2 billion. Clearly, other companies do not agree.
Despite inventing the digital camera in 1975, the company never capitalized on it, instead sticking to their film business, which has all but disappeared and had already begun shrinking in the 1990s.
Nowadays, the company sells commercial printers. The move has not proved viable as EK has only taken a 2.6 percent market share, globally.
In bankruptcy, the company is not likely to fire any of its 19,000 employees, but it will look to slash pension and health-care costs for retirees, which cost the company over $300 million per year.
Written by: Andre Yoskowitz @ 5 Jan 2012 1:16