Kodak was once a photography giant in the days of film and photo processing. Today, the majority of the world has moved beyond film to digital photographs rendering much of Kodak's offerings obsolete. Kodak has filed bankruptcy and is selling off assets to pay creditors. Shutterfly has stepped up and is plunking down $23.8 million to buy Kodak's online photo sharing platform called Kodak Gallery.
The terms of the deal will have Kodak transferring all Gallery customer accounts and images from the US and Canada to Shutterfly. Users of Kodak Gallery could create public or private galleries and upload photos to the service. The Kodak service has 75 million users today and customers who don't want their photos transferred to Shutterfly will have that option.
I'd wager most of those Kodak Gallery account holders wouldn't care who hosts their photos since many were probably only using the Kodak service because it was highly integrated with some Kodak digital cameras. Kodak and Shutterfly need the approval of bankruptcy courts before the deal can complete. Shutterfly has been on a buying spree over the last year and previously acquired TinyPrints for $300 million.