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Kodak Gets out of Sensor Business

Lee Love

New member
Well it looks like Kodak has gotten out the sensor business. It will be interesting to see how this affects the MF industry.

Who knows what cameras are using the Kodak sensor ?

Lee


ROCHESTER, N.Y. — Eastman Kodak Co. says it has completed the sale of an image sensor business to a private equity firm in Beverly Hills, Calif.

The photography pioneer is offloading what it calls "non-strategic assets" in a scramble to reinvent itself as a profitable player in digital imaging and printing.

Financial terms of the sale to Platinum Equity were not disclosed Monday.

But CEO Antonio Perez said last week that Kodak has already booked $120 million in asset sales this year and expects to reach $200 million by year-end.
 

Shashin

Well-known member
Leica M9, S2, and Pentax 645D. BTW, the sensor company is not going out of business, it is simply being sold. There is no reason to suppose it would stop production for important clients.
 

Lee Love

New member
Shashin, not sure I understand the difference. Doesn't this mean that Kodak will no longer be producing sensors and that another company will take over design and production of these products ?

I didn't say the sensor company was going out of business, just that it sounds to me like Kodak will no longer be involved.
 

Shashin

Well-known member
Kodak business that made the sensors is no longer owned by Kodak, but that business is still producing products. So this is most likely bad news for Kodak--I can't think of a good spin on this. But as far as the companies that are relying on the sensors, I see no problem with supplies nor for the business making them.
 

msadat

Member
they were actually bought buy a private equity firm. which means they got a deal. these guys will clean up the business and then sell it. if hassi has money it would be a good investment.

same thing happened with skype, it was bought from apple , cleaned up and then sold to microsoft for a lot more money.
 

David Klepacki

New member
Not sure I like this idea... Leica would be looking for a new sensor supplier.
I expressed the same concern in the recent Leica S2 thread in this forum.

Although, it sounds like a good idea from the perspective of the buyer (Platinum Equity). They may be able flip it to the highest bidder at some point, maybe Hasselblad maybe Leica maybe Pentax or maybe even Phase One. Whoever ends up owning it may be able to exploit an in-house advantage, or at least apply some market pressure in terms of controlling sensor availability.

The strategy for the camera/back makers should now be clear ... make sure they can switch to a competitive chip (Dalsa) without forcing customers to buy new cameras/backs.
 

Guy Mancuso

Administrator, Instructor
Not sure this is good news anyway you slice the cheese. New investors do some strange things sometimes and its not always good news. Than again it could be a good thing. In this case i'm not so sure I am leaning on the positive side of it. Kodak did a nice job they no longer control it, really is that simple.
 

Agnius

Member
I don't think Skype was ever associated with Apple. It was developed by Estonian programmers back in the day.

Why Kodak sold their sensor division? Probably it was bleeding cash so it had to go. Probably it was not profitable. What happens next - they will need to turn around the company into black (if Kodak could have done it they would have done it already) or put it on the chopping block and sell it piece by piece. I am sure Apple, Google and Samsung will be fighting for patent portfolio...

they were actually bought buy a private equity firm. which means they got a deal. these guys will clean up the business and then sell it. if hassi has money it would be a good investment.

same thing happened with skype, it was bought from apple , cleaned up and then sold to microsoft for a lot more money.
 

Graham Mitchell

New member
Why Kodak sold their sensor division? Probably it was bleeding cash so it had to go. Probably it was not profitable.
I was under the impression that the sensor division was profitable, which is why it was easier to sell than some other divisions. Kodak is desperate for cash at the moment to stay afloat.
 

fotografz

Well-known member
I don't think Skype was ever associated with Apple. It was developed by Estonian programmers back in the day.

Why Kodak sold their sensor division? Probably it was bleeding cash so it had to go. Probably it was not profitable. What happens next - they will need to turn around the company into black (if Kodak could have done it they would have done it already) or put it on the chopping block and sell it piece by piece. I am sure Apple, Google and Samsung will be fighting for patent portfolio...
Whether it was profitable or not, may not be the underlying reason ... maybe it depends on Kodak's long term plan and their need to raise capital ... selling less profitable (less profit volume) assets is a way to accomplish that. What I can't figure out is what business Kodak will be in? It isn't film, and now it isn't digital imaging sensors ... what do these guys do for a living?

Interesting times.

-Marc
 

Bob

Administrator
Staff member
Consider too that it is hard to sell something that nobody wants.
-bob
 

DDudenbostel

Active member
If Kodak kept the sensor production and went out of business then most likely there would be no more Kodak sensors. With it being sold to an investment firm they're going to build the company up to be a stronger and more profitable company which will continue to make sensors. Even if they flip it the new company will make sensors. Even if Hasselblad bought it would be foolish to cut off a segment of customers like Pentax and Leica. Business is all about making money by expanding the market / customer base.
 

Guy Mancuso

Administrator, Instructor
Its also about completely changing the business and in this case the small MF market and M9 market it may make much more sense to look at more consumer low end devices to support. Much more money in making P&S and lower end camera's than our market by a country mile. Seriously just think iPhone and having 5 million sensors to make or whatever that number maybe. Its about profit over and above costs to produce. the margins could be just so much higher to go low tech and in massive devices. Lots of possibilities here and I don't look at any of this with rose colored glasses. 35 years ago look at all the photo companies compared to how many today. It's staggering how many have hit the gutter.
 

Agnius

Member
Its also about completely changing the business and in this case the small MF market and M9 market it may make much more sense to look at more consumer low end devices to support. Much more money in making P&S and lower end camera's than our market by a country mile. Seriously just think iPhone and having 5 million sensors to make or whatever that number maybe. Its about profit over and above costs to produce. the margins could be just so much higher to go low tech and in massive devices. Lots of possibilities here and I don't look at any of this with rose colored glasses. 35 years ago look at all the photo companies compared to how many today. It's staggering how many have hit the gutter.
I guess nobody is holy. I was very surprised to see Agfa go the way of the Dodo, but business model that worked in old days might not be adequate in the days of the Google. I see that there is only so much money to go around and it is not enough for everybody, so some players have to strike out so others can continue to play.

Best of luck to Kodak, but I am not holding my breath.
 

sirimiri

Member
I'm pretty sure Skype was bought by E-Bay, then wandered around within the abyss that is that company, was then floated back into the market as its own entity, before being acquired by Microsoft.

But, I could be plenty wrong, there's loads I forget lately.

I don't think Skype was ever associated with Apple. It was developed by Estonian programmers back in the day.

Why Kodak sold their sensor division? Probably it was bleeding cash so it had to go. Probably it was not profitable. What happens next - they will need to turn around the company into black (if Kodak could have done it they would have done it already) or put it on the chopping block and sell it piece by piece. I am sure Apple, Google and Samsung will be fighting for patent portfolio...
 

Agnius

Member
I'm pretty sure Skype was bought by E-Bay, then wandered around within the abyss that is that company, was then floated back into the market as its own entity, before being acquired by Microsoft.

But, I could be plenty wrong, there's loads I forget lately.
Sure, it was EBay, not Apple. Ebay bought Skype then could not figure out what to do with it. Happens to everyone, but at least they made money on the sale to Microsoft.
 
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