Pradeep Jotwani, president, consumer businesses, and Kodak chief marketing officer, said the following in a press release from the company,
"For some time, Kodak’s strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today’s announcement is the logical extension of that process, given our analysis of the industry trends.”
The company hopes to emerge from bankruptcy by next year. It has secured $950 million in debtor-in-possession financing to help it manage the process.
For some time, Kodak has been trying to sell some or all of its patent cache. The company currently holds over 1,000 digital imaging patents, and as we have seen of late, buying patents as protection against lawsuits seems to be a booming business.
When Google made its move to acquire Motorola, still awaiting federal approval, it was made quite clear that a big reason behind the acquisition was Motorola's patent hoard.