I can’t tell you how thrilled I was to hear that Shutterfly has bought Kodak Gallery, especially since I’m an avid user of both. But on July 2, Kodak Gallery will close completely, so before then, you’re going to want to take some action depending on how you want to manage your photos. 
Kodak Gallery bought by Shutterfly

{We have a handy summary of what you need to do to save your photos after the jump!}

If you do not want your photos to be automatically moved to Shutterfly.com, then you have until May 28, 2012 to opt out. Then, you’ll want to be sure to get all your personal photos off Kodak Gallery by noon PST on July 2 when the site officially closes and photos are deleted. 
For those of you who would like your photos to be transferred over to Shutterfly, you don’t need to take any action–which is great. However it’s important to note that only personal photos will be automatically transferred; if you’ve got group albums, or projects (like calendars, photo books, or similar) you need to complete and purchase those before noon PST on July 2. It would also be helpful to update your email in your Kodak Gallery account so they can keep you abreast of all the changes. 
Then keep your eye on your inbox in June for instructions to help you choose how you’d like your Kodak Gallery account linked to Shutterfly, with the final transition complete in early July, where you’ll be able to enjoy you love about both services on Shutterfly. -Kristen
If you’ve got more questions about the Shutterfly-Kodak Gallery purchase, check this handy FAQ page. And visit the Kodak Gallery to opt out or get more information.