Business & Finance
GoPro to be acquired by Starman Optical in $285 million merger
The action camera company plans to clear its debt and expand into defense and commercial markets while remaining public.
The short version
- GoPro has agreed to a merger with Starman Optical, valuing the deal at $285 million, and expects to close the transaction by the end of the year.
- Shareholders will receive $1.14 per share and retain approximately a 10% stake in the combined company, which will remain publicly traded.
- The acquisition is intended to pay off GoPro's $92 million debt and pivot the company toward domestic manufacturing for defense and commercial sectors.
Key facts
- GoPro is being acquired by Starman Optical in a merger valued at $285 million.[TechCrunch]
- GoPro shareholders will receive $1.14 per share and hold about 10% of the combined company.[TechCrunch]
- The transaction will eliminate GoPro's outstanding debt of $92 million and is expected to close by the end of the year.[TechCrunch]
- Starman Optical is part of Starman Holdings, which owns brands including Incase, Incipio, and Griffin, and was incorporated on August 31.[TechCrunch]
- The merger follows GoPro's warnings in June that it might face business failure without new funding, prompting CEO Nick Woodman to invest $20 million of his own money in July.[TechCrunch]
- YouTuber Markiplier recently disclosed an 8.5% ownership stake in GoPro prior to the merger announcement.[TechCrunch]
What remains uncertain
- It remains unclear exactly how the transition to domestic manufacturing will affect existing product lines, though GoPro stated it will fully support its consumer products.[TechCrunch]