Kodak Concedes Difficulty in Drawing Lead Bidder for Patents

[Photo Engineer]

At one time, they took product specialists and sent them out for MBAs. These people then became some of the top managers. The problem was, that they started to promote MBAs who had only business admin backgrounds, or accountants. Carl Kohrt was one of the last to go from science to business, but they passed over him for a pure business type, Carp, and this was a recurring theme.

Now, Perez may be a product specialist, but not in photography, in printing. He did not know the photo business. Neither did Fischer.

Fischer new the phone business, so why did Kodak fail to get into that? Perez knew printing, so why did Kodak fail there? Interesting questions, eh?

PE

 

[lxdude]

Yes, nothing wrong with having an MBA, per se. As has been stated here more than once, if you want to have a photography business, studying business will benefit you more than studying photography.

But imagine if you couldn't shoot Portra, because some bean-counter says buying dollar a roll cheap print film will do just as well. Not far-fetched- I've had essentially that happen in my former line of work.

 

[dr5chrome]

..it's still not too late for KODAK. They can come back from the grave if they just get the corporate mind out of it. They need to do what ILFORD-PHOTO did. They can invest what $$ they have left [or someone can] and downsize all that monster-equipment they have, and make a smaller productive company. Problem is, I don't think they care to do it and George is turning over in his grave..

 

[RattyMouse]

..it's still not too late for KODAK. They can come back from the grave if they just get the corporate mind out of it. .

How do we know that? Can a smaller Kodak support the massive legacy costs? Do they have enough cash to re-build the company into a smaller profitable one? Do they have a good enough core of employees anymore? Have all the good ones left by now?

How do we know that Kodak has not gone past the point of no return? Just merely surviving up until today is no guarantee.

 

[Photo Engineer]

Tonight, Kodak announced that they will be keeping some of the digital patents. A full decision is still delayed.

PE

 

[pbromaghin]

How do we know that? Can a smaller Kodak support the massive legacy costs? Do they have enough cash to re-build the company into a smaller profitable one? Do they have a good enough core of employees anymore? Have all the good ones left by now?

How do we know that Kodak has not gone past the point of no return? Just merely surviving up until today is no guarantee.

Well, we don't know that. We don't know how much the film division will be associated with the legacy costs. But a lot of those legacy costs might just go *poof*.

But that is what bankruptcy is all about, sticking it to those who trusted you the most - your unsecured creditors. That just might include a lot of long time, faithful, dedicated former employees.

 

[Prof_Pixel]

Yes. And look where it got them...

The products I was thinking about: the RFS 2035 film scanner, the Premier Image Enhancement System, and the original DCS (later know as the DSC-100) all did quite well (note that the first two are hybrid equipment).

The upper level manager who supported them, and understood how the imaging market was changing, was replaced by a bean counter in about 1991 and the rest is history.

 

[Steve Smith]

Tonight, Kodak announced that they will be keeping some of the digital patents.

Which roughly translates to: 'nobody wanted to buy them'.


Steve.

 

[Sirius Glass]

... for enough money. Kodak will make more money by retaining them than selling them.

 

[BrianShaw]

I'm keeping my wife for the same reason. Auction never reached the reserve value!

 

[Sirius Glass]

I'm keeping my wife for the same reason. Auction never reached the reserve value!

Funny, I traded mine in for a low maintenance, lower mileage, newer model who when I have a GAS attack tells me, "You have would your career to buy things for others and now is your time, if you want it and will enjoy it, go ahead and buy it."

 

[BrianShaw]

Ya, I contemplated trading... then I looked at my buddy's wife and decided I'd just keep what I have. Mine lets me buy whatever I want, mostly because she knows I need/want little. Once I wanted a Hassleblad and she let me have that. She twitched a little when I told her the price but never said anything except that she would not stand in front of it any more than she'll stand in front of any of my cameras. Maybe I did OK the first time around!

As far a Kodak is concerned... if they can't peddle the patents I sure hope they have a "plan B" ready!

 

[SkipA]

The big question is, when do we get to hear about "plan B".

 

[lxdude]

I'm keeping my wife for the same reason. Auction never reached the reserve value!

God help you if she ever reads this.

 

[Brian C. Miller]

I've seen some reports that Kodak has made a deal for some of the digital patents for a bit over $500 million. Does anybody have more info?

 

[PKM-25]

Looks like they are possibly teaming up and doing a group buy instead of ramping up a bidding war:

http://www.13wham.com/news/local/story/kodak-patent-sale/a2B5Lqo1dEWLP0ELz-yZfg.cspx

It also looks like this is just not going to go much over $500 million, quite a bit less than the bean counting optimists were hoping.....what a mess...

 

[CGW]

Looks like they are possibly teaming up and doing a group buy instead of ramping up a bidding war:

http://www.13wham.com/news/local/story/kodak-patent-sale/a2B5Lqo1dEWLP0ELz-yZfg.cspx

It also looks like this is just not going to go much over $500 million, quite a bit less than the bean counting optimists were hoping.....what a mess...

The stock quivered up a bit on the day in response:

http://www.google.com/finance?cid=10501

 

[SkipA]

General question here. What happens to the patent portfolio of a company that fails to reorganize and goes completely bankrupt?

 

[Photo Engineer]

Auctioned off during the CH 8 proceedings I suppose.

PE

 

[RattyMouse]

Looks like they are possibly teaming up and doing a group buy instead of ramping up a bidding war:

http://www.13wham.com/news/local/story/kodak-patent-sale/a2B5Lqo1dEWLP0ELz-yZfg.cspx

It also looks like this is just not going to go much over $500 million, quite a bit less than the bean counting optimists were hoping.....what a mess...

I thought it was stated somewhere that Kodak needed to gain at least 2 billion dollars from this auction to have any hope at all to pay back their creditors. What happens next if Kodak fails to raise the funds? Can the bankruptcy be extended?

 

[Brian C. Miller]

I read that the Justice department might be interested in this single bloc of buyers, as it could be viewed as collusion. You can't have an auction with just one buyer.

 

[Photo Engineer]

I thought it was stated somewhere that Kodak needed to gain at least 2 billion dollars from this auction to have any hope at all to pay back their creditors. What happens next if Kodak fails to raise the funds? Can the bankruptcy be extended?

You are correct. They needed $2B to pay off all debts. As of now, they either succeed or fail at raising that. If they don't raise it, then they try to pay their debts out of income (if any), or they fail at recovery and go into the next stage of the bankruptcy proceedings as defined by the court. That cutoff date is Feb. 2013.

PE

 

[Steve Smith]

You can't have an auction with just one buyer.

Sure you can. Only one bidder will buy and you can also have an auction with just one bidder (or none).


Steve.

 

[BrianShaw]

... I just hope that single buyer is smart enough to not try outbidding himself.

 

[zsas]

Supposedly we could hear tomorrow that a winner (if any) has been selected:

According to the notice filed with the U.S. Bankruptcy Court for the Southern District of New York, Kodak is expected to give the court a Notice of Final Sale regarding the auctioned patents by Thursday, with a final court hearing to follow a week later.

Per Appleinsider:
http://appleinsider.com/articles/12/08/22/winner_of_kodak_auction_may_be_determined_by_aug_23_ahead_of_final_sale_hearing.html