Xiaomi- GoPro

According to the latest reports, Xiaomi might be acquiring GoPro very soon. There was a rise of 8.8% in the shares of GoPro Inc. after an announcement to the effect that Xiaomi was interested in acquiring the action camera company. The price rose to a high of $5.30.

GoPro Issues

GoPro is a company that sells action cameras, but it has been undergoing some financial troubles for the past few years and has even laid off about 600 of its employees recently.

According to Android Headlines, the news about the acquisition of GoPro by Xiaomi follows another report where GoPro stated that it would be giving up on its drone business due to business problems.

Nick Woodman GoPro

Nick Woodman Confirms

Nick Woodman, the founder of GoPro has made a statement that they are about to sell the company. The company had also hired the services of JPMorgan Chase and Company with respect to making such a sale.

However, one thing is clear, that the future of GoPro now rests on Nick Woodman, as he holds 76.5% of the voting power in the company. So all decisions of selling will have to pass by him.

According to GoPro CEO’s statement, he will readily welcome a chance for merging GoPro with another bigger parent company, in order to improve their business and get a better ROI. Nick Woodman had stated his openness to the idea in his interview with the CNN a few months back.

GoPro

Price Valuation and Offers

GoPro was earlier valued at around $10 billion, but now the value has fallen to around $761 million, though a company that bought GoPro over could make profits from sales of the device and by using the brand name.

According to The Information, GoPro could be valued at around $1 billion, saying that Xiaomi does not wish to make an overpayment for GoPro and is still considering making an offer. This valuation at $1 billion has been made based on what Hewlett Packard had paid while buying Palm in the year 2010.

Earlier, DJI, a drone maker from China had also wanted to make a deal with GoPro some months ago. However, it was rumored that the Chinese company did not find much value in GoPro, though DJI did not make any comment on the matter.

Xiaomi is one of the biggest smartphone manufacturers in the world. The company makes smartphones as well as smartwatches, fitness trackers, and laptops, not to speak of smart home devices and also drones.

Xiaomi already has a series of action cameras and it seems very likely that the company would be willing to enhance the existing product line by purchasing the GoPro IP.

For the past year, the stocks of GoPro have been hurtling down and the investors of the company are hoping that it gets acquired in order to see a surge in the price. Though there is no confirmation about the deal made between Xiaomi and GoPro, it is likely that GoPro will be bought over by Xiaomi for a price of about $1 billion very soon.

News Xiaomi Mulls Acquisition of GoPro: Surge in GoPro Stock Price