Action-camera maker GoPro found a potential lifeline after agreeing to merge with privately held optical-photonics company Starman Optical in a deal valued at $285 million. The transaction will give GoPro fresh capital while allowing it to diversify beyond its traditional consumer camera business.
Under the agreement, GoPro shareholders will receive $1.14 per share in cash. They will also retain about 10% ownership of the combined company. Starman will hold the remaining stake following the transaction.
The merger comes at a critical time for GoPro. The company faced declining sales, mounting losses, higher component costs, and intense competition from rivals such as DJI and Insta360.
As part of the transaction, GoPro’s outstanding debt of about $92 million will be repaid in full at closing. This will leave the company with a substantially debt-free balance sheet and provide greater financial flexibility.
GoPro struggled significantly since its public-market debut. The company briefly reached a valuation of nearly $4 billion in 2014, but its market value has since fallen sharply amid weaker demand and intensifying competition.
The deal will also reshape GoPro’s business strategy. Starman Optical manufactures optical transceivers in the US, components that support high-speed communications and AI data-centre infrastructure.
GoPro plans to add Starman’s optical-transceiver business to its portfolio. The combined company will target the growing AI infrastructure market while continuing to develop consumer products.
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