Key facts
- GoPro is being acquired by Starman Optical for $285 million.
- The deal values GoPro at $1.14 per share.
- GoPro's $92 million debt will be eliminated.
- GoPro shareholders will own about 10% of the combined entity.
- The merger is anticipated to conclude by year-end.
- Starman Optical aims to enhance GoPro's IP and growth in consumer, commercial, and defense sectors.
GoPro, the pioneering action camera company, has agreed to be acquired by Starman Optical for $285 million. The deal, announced Tuesday, will see Starman Optical pay $1.14 per share to GoPro shareholders, who will retain approximately 10% of the newly combined entity. The merger is expected to be finalized by the end of the year and will eliminate GoPro's $92 million in outstanding debt.
Starman Optical, part of Starman Holdings, which also owns consumer tech brands like Incase, Incipio, and Griffin, focuses on optical-photonics technologies and domestic manufacturing. The company's CEO, Charles Tebele, stated that the combination aims to leverage GoPro's optical expertise and intellectual property with Starman's transceiver capabilities and U.S. manufacturing platform to bring critical component production back to the United States.
The merger comes after a period of financial difficulty for GoPro, including multiple rounds of layoffs and a warning in June that the company might fail without new funding. In July, CEO Nick Woodman personally invested $20 million to sustain operations. The company had previously explored a pivot to defense technology.
GoPro plans to continue supporting its existing consumer products while investing in a diversified product roadmap, potentially addressing national security interests related to cameras, optics, and AI infrastructure. YouTuber Markiplier was recently revealed to have amassed an 8.5% stake in GoPro.