GoPro has long been thinking about selling its business, and a potential buyer has already been found. According to The Information, the manufacturer of action cameras is going to take under its wing the Chinese company Xiaomi.
Soon after entering the IPO in 2014, the market value of GoPro jumped above $ 10 billion. Trying to justify the expectations of investors, the company took a course in the media industry and started to produce entertainment content, and in the meantime, competitors began actively to win a share in the market of action cameras. The main business went into recession, and stock quotes too. The fourth quarter of 2015, GoPro finished with a loss. The situation could be rectified by the Karma drone presented in 2016, but the attempt to enter the new segment failed miserably. The drones lost control and fell. In early 2018, the company refused to produce quadrocopters.
What do they say about the sale?
Today, GoPro is estimated at about $ 760 million. As reported by the insiders, over the absorption deliberated in the DJI, but the manufacturer of the drones decided that it was not worth it. Xiaomi also does not want to overpay for a troubled company. The deal can amount to $ 1 billion. Against the backdrop of these rumors, GoPro shares jumped 8.8%.
Xiaomi - not new to the market of action cameras. At first, the company released them jointly with the Chinese start-up YI Technology, and last year Xiaomi Mi Action Camera 4K came out. It costs four times cheaper than the flagship model GoPro HERO6 Black and in many ways is not inferior to the competitor.
Sources: The Information , Bloomberg