Andre Yoskowitz
6 Jul 2014 21:39
Shutterfly, the digital photo printing site, has hired boutique investment bank Qatalyst Partners LLC to help find buyers for the company.
Valued currently at just under $2 billion, the company is said to have potential suitors in the private equity world, as well as potentially from Web storage companies and larger e-commerce sites.
Shutterfly lets customers print their digital photos into real albums, or onto accessories like pillows, iPhone/iPad cases, posters and more. The site also offers greeting cards, invitations, stationery and acquired Kodak Gallery through the Eastman Kodak bankruptcy auction in 2012. The site allows for a Flickr-esque slideshow gallery.
Competition in the space has always been heated, with retailers like CVS and Walgreens offering their own rivals, as well as Snapfish, which is now owned by HP. In an effort to expand, the company has put profits on hold, seeing a loss of $34.2 million in the Q1 on $137 million in revenue. Revenues were up 17 percent year-over-year but the loss was 200 percent worse. The company is expected to see its first annual net loss in its public history this year.
Source:
BusinessWeek