Rochester, N.Y. - Eastman Kodak announced that it is in talks with Shutterfly for the possible sale of certain assets of its Kodak Gallery on-line photo services business.
Kodak would sell the photo service for $23.8 million. The terms of the agreement include the transfer of Gallery customer accounts and images in the U.S. and Canada to Shutterfly.
Kodak Gallery has more than 75 million users. Kodak says customer photos will be safeguarded throughout the process.
Customers who do not want their photos transferred to Shutterfly will get the chance to opt out of the transition process. Those customers could then retrieve their images through free downloads or by purchasing DVDs from Kodak.
Kodak predicts the sale process to be finished by spring.