One of the grand companies of the 20th Century, Eastman Kodak, fell on hard times as it misread the impact of the digital revolution -a mistake which literally wiped out its film and camera businesses. Although this 131 year old company still manufacturers film - feeding Hollywood's movie business - it is only a shadow of what it once was as it dominated the global photographic industry of decades. Kodak's current market value of $576 million pales in comparison to its all time high of $30 billion! Its share price peaked in February 1997 at $95.25, it closed last week at $3.04.But Kodak has something that is getting more valuable by the day - its digital imaging patents. These patents, conservatively valued at more than $3 billion, are used in 85% of all digital cameras and smartphones. With more than 1,100 digital imaging patents (which represent only 10% of Kodak's total patent count) Kodak is sitting on a treasure trove of intellectual property. As an example, just last week, Google agreed to buy Motorola Mobility for $40/share (or $12.5 billion) a 73% premium over its current share price to obtain access to its patent inventory.
In addition to Google, potential buyers for the grand old dame's intellectual property include Microsoft, Samsung, Apple, AT&T, Verizon, and others. Good luck Kodak!
Best and Happy Movie Going!
Jim Lavorato
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