BRIDGE PRESS: Kodak seeks acquisitions to boost online presence
By Jennifer Wiggins, Bridge News
New York--April 28--As Eastman Kodak Co. shifts its focus away from
traditional photographic products towards digital products, it expects to make
more acquisitions in the software and digital imaging fields to boost its online
presence and capabilities, Kodak Assistant Chief Operating Officer Carl Kohrt
told Bridge News Tuesday. More acquisitions like its recent PictureVision
purchase are likely, he said, explaining the purchase "jump-started us into the
technology of retail Internet."
Kohrt spoke to Bridge News following a press conference in New York during
which Kodak officials emphasized the company's intentions to shift the focus of
its consumer imaging segment, which markets traditional film and camera
products, towards digital media and camera products.
"More than ever we now see digital as supporting our overall growth as
opposed to hurting it," Kodak Chief Executive Officer George Fisher told the
conference.
Kodak has entered the digital field primarily via its acquisition of 51
percent of digital imaging services provider PictureVision's stock for about $50
million on March 12, and its $530 million purchase of Imation's medical imaging
business on Nov 30.
PictureVision enables Kodak to provide online digital photographic services.
In February, PictureVision announced it would license its technology to eBay to
enable users to add photographs to their online auction listings.
Kodak today said that its online film processing service, "You've Got
Pictures!," which will also use PictureVision and which will be marketed to
America Online members, will be beta-tested in June in Cleveland, Ohio, and
Orlando and Tampa, Fla.
The company expects the service to be available to AOL members by the end of
the year.
KODAK AIMS TO BOOST PRESENCE IN OUTPUT MEDIA
Kodak is also seeking to boost its presence in "output media;" not only does
it want to provide consumers with film and paper products, but it also would
like to obtain extra revenue by processing those products.
"Our holes are on the output side," Kohrt noted.
Kodak today announced a new paper product called Kodak DuraLife that will be
available only through the company's new processing service, Kodak Picture
Processing. Traditionally, Kodak has made its paper available to the wider
processing market.
This move into digitalization and media output could produce annual
incremental revenues, relative to 1998, of $3.5 billion to $4 billion by the end
of 2004, the company said today. Kodak's 1998 revenues were $13.4 billion.
MORE JOINT VENTURES SEEN AS KODAK LOSES INWARD FOCUS
More joint ventures--similar to the company's venture with Sun Chemical
Corp., Kodak Polychrome Graphics, which supplies film, paper and processing
products to the global graphics arts market--are also likely, Kohrt said,
adding Kodak intends to form alliances with companies that can help it supply
electrophotographic and inkjet printing products, 2 areas in which it is weak.
Kodak's electrophotographic alliance with Heidelberger Druckmaschinen AG,
NexPress, is an example of such a venture, he said.
Other ventures are expected to result in conjunction with its ongoing cost
reduction program, which is expected to result in savings of $1.2 billion by the
end of the year.
As a result of the cost reduction, Kodak is scaling back its research and
development spending and becoming "less inwardly focused" with regards to the
company's development of technology, Kohrt said.
"If we don't have it inside, we'll search for it outside," he said. "We
can't do it all ourselves." End
End
By Bridge News
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