Shares of GoPro soared on Thursday following stories that the beleaguered motion digital camera maker may be contemplating a takeover bid from Chinese language know-how big Xiaomi.
A bid from Xiaomi, which competes with Apple and Samsung out there for smartphones; and GoPro for motion cameras, may assist to inject new life into an organization that has been struggling to innovate for greater than a decade.
GoPro, based by surfer-turned-entrepreneur Nick Woodman, might probably fetch as a lot as $1 billion from Xiaomi, in accordance with The Info, which broke the story citing sources acquainted with the matter on Thursday.
If the deal goes via, GoPro would enter into an organization that has its personal motion digital camera and rivals Apple as one of many largest smartphone manufacturers on the planet.
In 2015, Xiaomi launched the Yi Motion Digital camera for $sixty four, greater than half the worth of the GoPro Hero. Along with its smartphones and GoPro-rivaling cameras, the corporate additionally has a line of drones, a market that GoPro exited earlier this yr citing competitors.
In an interview with CNN in January, GoPro’s CEO stated the corporate was “completely” open to exploring a merger or acquisition alternative, saying it’d be “irresponsible to not” think about it. The corporate, he stated, can be serious about turning into half of a bigger mother or father firm that would assist GoPro scale.
GoPro’s largest drawback is that it hasn’t innovated its product line a lot since its inception greater than 15 years in the past. Along with its core product line — its Hero cameras — GoPro launched the tinier GoPro Session, an ice dice-formed waterproof digital camera that by no means actually took off. It tried to increase into content material, however needed to ultimately hand over on that enterprise and companion with Purple Bull. It additionally tried to get into the drone enterprise, however folded that enterprise in January amid competitors from DJI and others.
A takeover from Xiaomi would give it entry to deeper pockets and expertise with expertise in motion cameras, cellular know-how, wearables, drones and sensible TVs –by way of Xiaomi’s Mi Field– which might assist to reinvigorate its content material technique and improve its relevance within the U.S. as soon as once more.
GoPro is called a well-liked model that has lengthy supported the motion sports group with rugged cameras that may shoot excessive-high quality video from the attitude of skiers on mountain slopes, skydivers in freefall and surfers from the barrel of waves, nevertheless it’s necessary to notice that the corporate has tried extra just lately to crack the normal sports world as nicely.
In 2016, FOX Sports activities outfitted referees with GoPro cameras to offer viewers a singular perspective in the course of the Massive Ten championship soccer recreation. And this previous November, Golden State Warriors Chief Working Officer and longtime sports government Rick Welts joined the GoPro board of administrators.