As per the latest reports, Xiaomi Corp., the Chinese electronics maker broadly known for its smartphones, is showing great interest in capturing GoPro. As per the previous announcement, GoPro had put itself for sale as the company was facing difficulties carrying on.
GoPro, formerly known as Woodman Labs, Inc., was founded in the year 2002. In its initial days, the company started developing a line of action cameras, and later it moved into creating video editing software. They even succeeded in building a quadcopter drone, widely known as karma, which was released in October of 2016. Interestingly, the shares of GoPro got increased by 8.8% just after the Xiaomi report started spreading.
As previously mentioned, GoPro has not been doing great nowadays; this can be clearly seen in the company’s market capitalization. GoPro has now become a $761 million company which was once valued at $10 billion. The company reportedly hired JPMorgan Chase & Co. to guide the company in case of a potential sale. The report published by Bloomberg says if this deal happens, GoPro would be able to grab up to $1 billion into their company. The same situation occurred when Palm, a struggling electronics maker, was bought by Hewlett Packard in 2010.
Nick Woodman, the CEO of GoPro, says he is open to the deal and will only take those decisions that are beneficial for the company. Though Xiaomi has reviewed the offer, it seems like they are taking the process slowly as they don’t want to end up paying extra pennies.