GoPro to be acquired by photonics company
The previously private company Starman Optical Inc. is acquiring GoPro. The action cam manufacturer intends to build AI infrastructure in the future. It remains unclear what will happen to its previous core business.
GoPro is merging with Starman Optical. The two companies have entered into a binding agreement: Starman is buying 90 percent of GoPro shareholders' stakes for a total of 285 million US dollars. This corresponds to 1.14 US dollars per share.
As such, this is effectively more of a takeover than a merger. However, because ten percent of the merged company will remain in the hands of the existing shareholders, GoPro will continue to be listed on the stock exchange. GoPro's debt of approximately 92 million US dollars will be fully repaid upon completion of the deal.
The previously private company Starman Optical develops optical transceivers that transport data as light signals via fiber optics. Demand for these has risen sharply in the wake of the AI boom. According to the joint statement, GoPro also intends to expand into new markets such as AI data centers, defense, and aerospace.
Source: Starman New Photonics
According to CEO Nicholas Woodman, existing cameras, subscriptions, and the cloud platform will continue to be «fully supported». Starman Optical is now intended to «enable access to AI infrastructure». Whether this new focus is sustainable or primarily a good story for the stock market remains to be seen.
Windfall for YouTube star
The stock jumped 50 percent at times following the announcement. This comes after the price had slipped over the last few months because GoPro had warned in June of «substantial doubt about its ability to continue as a going concern». Just days before the merger announcement, it became known that the YouTuber Mark «Markiplier» Fischbach had accumulated 8.5 percent of the shares. This news had already caused the price to rise from 0.60 to over 0.80 US dollars. With the takeover by Starman at 1.14 dollars per share, Fischbach is reaping millions in profits.
It is unclear what will happen to GoPro's core business. The US manufacturer's once market-dominant action cams have come under strong competitive pressure from China in recent years. In the press release, GoPro does affirm support for existing devices – but does not say a word about whether cameras will remain a focus in the future.
My fingerprint often changes so drastically that my MacBook doesn't recognise it anymore. The reason? If I'm not clinging to a monitor or camera, I'm probably clinging to a rockface by the tips of my fingers.
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