Kodak Snags Online Photo Service

Eastman Kodak Co. Monday moved to expand its online photo offerings with a definitive agreement to acquire Emeryville, Calif.-based Ofoto Inc., which will serve as a connection between Kodak's film scanning and uploading services and the output capabilities of its Qualex Inc. subsidiary. The acquisition is intended to help Kodak create a "complete online photography experience," which ranges from capture devices and film scanning and storage infrastructure to online services and output media. Ofoto, with 1.2 million registered users, offers digital processing of digital images and traditional film, prints, private online image storage, sharing, editing and creative tools, frames, cards and other merchandise. Kodak said the firm will operate as a wholly owned subsidiary and will be led by its existing management team, which will report to Willy Shih, president of Kodak's Digital and Applied Imaging unit. Kodak already operates a portfolio of Web offerings, including kodak.com, Kodak PhotoNet Online, the Kodak Picture Center online at CVS.com, and the Kodak-sponsored "You've Got Pictures" service on America Online. The company said that Ofoto, together with its PictureVision subsidiary and kodak.com, will serve as the cornerstone of its Internet imaging infrastructure and service offerings. The company said it will drive market growth by integrating Ofoto's Web site, infrastructure, e-commerce capabilities and digital printing expertise with its film-scanning infrastructure and network services and Qualex's output capabilities.