History
Shutterfly was founded in December 1999 by Eva Manolis and Dan Baum as an internet-based social expression and personal publishing service.[7] Its corporate headquarters are located in San Jose, California, with offices in other locations, including Eden Prairie, Minnesota and Haifa, Israel. The company's flagship products are photo books and customized cards and stationery.[7]
In 2000, Shutterfly partnered with Kodak to offer their customers film developing and scanning services.[8]
In 2001, Shutterfly secured $3 million in incremental capital from Silicon Valley Bank and $10 million from Clark and Mohr Davidow Ventures.[9][10] The funds include an equipment financing line from Silicon Valley bank. In 2002, the company exceeded its expected earnings and began considering an IPO for 2004[11] however, it did not take place until 2006. In September 2006, they completed their initial public offering and their common stock was officially listed on the NASDAQ Global Select Market under the symbol “SFLY."[12]
In 2007 Shutterfly was recognized by Deloitte & Touche as Fast 50 Technology Company for Silicon Valley and a Fast 500 Company for North America. Shutterfly ranked #20 in the Internet, Media & Entertainment and Communication category on the Fast 50 list and ranked #241 on the Fast 500 list.[13]
On June 10, 2019, Apollo Global Management announced that it would acquire Shutterfly for $2.7 billion, as well as its competitor Snapfish in a separate transaction valued at around $300 million. Apollo plans to merge both companies into a single entity, with Snapfish parent company District Photo as a minority stakeholder.[14] On September 25, 2019, Apollo's acquisition of Shutterfly was completed, while the proposed merger of Shutterfly and Snapfish was still in process.[15] The merger of Shutterfly and Snapfish was completed on January 8, 2020.[16]
In September 2021, Shutterfly settled a class-action lawsuit, relating to a breach of Illinois' Biometric Information Privacy Act, for US$6.75 million.[17] In December 2021, Shutterfly was subject to a ransomware attack.[18] The ransomware group 'Conti' subsequently published 7 gigabytes of Shutterfly data including employment agreements, financial documents, legal documents and payroll data.[19]
Sally Pofcher was named CEO in early May 2023, replacing Hilary Schneider, who transitioned to the board of directors as a strategic advisor.[20]
On March 29, 2023, Shutterfly deleted or removed access to all photographs of customers whose accounts were deemed "inactive."[21]
CFO Mike Eklund resigned in September 2023 and was succeeded by Jan Paul Teuwen, former CFO of Lumileds.[20]
