A little-known optical parts maker is buying GoPro for $285 million in cash, a deal that would repay the struggling action-camera maker's debt and give it more room to navigate surging memory chip prices and tough Chinese competition. S.
for use in AI data centers, would get a 90% stake in GoPro under the deal announced on Tuesday, with existing shareholders of the camera company owning the rest. S.
patents including in optics and imaging solutions by tapping the commercial, defense and AI markets. 5% to its last close.
That could potentially suggest that investors are expecting a higher bid. After hitting a valuation of $4 billion on its first trading day in 2014, GoPro stock has lost around 96% of its value as the company struggled in recent years in the face of mounting competition from Chinese rivals such as DJI and Insta 360.
91 million hit in the last three months of 2014. A recent surge in memory chip prices driven by Big Tech's AI infrastructure buildout has added to the pressure, forcing the company to warn of substantial doubt about its future in June.
As part of Tuesday's deal, Starman will add its optical transceivers - components that let networking equipment send data using light - to GoPro's portfolio. S.
without specifying a timeline. A clutch of companies including Allbirds, now known as Smartbird, have pivoted to AI in recent months, attracted by a surge of investment in the industry.
Unlike some of them, GoPro will continue with its consumer business. The company, which has about $92 million of outstanding debt, will also remain publicly listed after the deal closes, expected by the end of the year.
