Kodak Stock Dives to 38-Year Low After the Company Borrows $160 Million
Yesterday Kodak’s stock fell 64 cents, or 26.9%, to close at $1.74 — the lowest the stock price has been in 38 years. Investors were reacting to news that the company (which hasn’t netted a profit since 2007) had taken out a new $160 million loan. The plummeting value of the company is bad news for the photography pioneer but good news for companies that might be interested in buying it — a list that is rumored to include Google and Microsoft.
Kodak shares hit 38-year low on borrowing concerns [Reuters]
Update: Reader Christian Rudman points out that the reason for the loan wasn’t because Kodak’s cash reserves had run out. They last reported having nearly $1 billion on hand on June 30th.