Eastman Kodak Company is to sell their OLED business to a group of LG companies in a move to tighten Kodak's business portfolio.
The company experienced losses in the last quarter of 2008 and had indicated that they would be looking at restructuring in order to reach their full potential.
"As we said earlier this year, OLED is one of the businesses we wanted to reposition to maximize Kodak's competitive advantage at the intersection of materials and imaging science," said Laura G. Quatela, Kodak's Chief Intellectual Property Officer and manager of the company's OLED business.
"This action is consistent with that strategy. Our OLED intellectual property portfolio is fundamental; however, realizing the full value of this business would have required significant investment."
Kodak has been a pioneer in developing technology associated with OLED displays. In the 1970s, they developed the world's first viable OLED material. Only last year Frost & Sullivan recognized Kodak's work with OLED's by presenting the company with its 2008 Technology Leadership Award. Earlier this year, the DOE recognized Kodak's advances in OLED technology for solid-state lighting applications by presenting them with an award for excellence in project execution.
In the agreement, Kodak will continue to have access to its OLED technology for use in its own products. The deal is expected to be finalized by the end of the year.
IDTechEx notes that every year, several organisations exit the OLED business as the big market for flexible OLEDs remains elusive due to cost and lifetime challenges and the market for rigid, non-printed OLEDs becomes a battle between the leading East Asian display manufacturers such as LG and Samsung. Investment in OLEDs has now reached around $10 billion with around $1 billion of loss-making rigid OLED business yearly to show for it. Several Western operations in printed and other modern types of display have been bought by East Asian businesses recently including Cambridge Display Technology and E-Ink. East Asian investors also have major shareholdings in Western display companies such as Plastic Logic and SiPix.
Also read Kodak plans to restructure OLED business.
For more on OLEDs attend Printed Electronics Europe 2010 and read Displays and Lighting: OLED, e-paper, electroluminescent and beyond.
