GoPro Merges With Starman Optical for $285 Million as Shares Jump 38%
Updated
Updated · CNBC · Sep 1
GoPro Merges With Starman Optical for $285 Million as Shares Jump 38%
3 articles · Updated · CNBC · Sep 1
Summary
GoPro said it will merge with private photonics company Starman Optical, using the deal to expand beyond action cameras into AI data centers and defense.
The transaction gives GoPro shareholders $285 million in cash, or $1.14 a share, while keeping the stock listed on Nasdaq and repaying $92 million of debt at closing.
Shares surged 38% after the announcement, a sharp reversal for a company that has traded near penny-stock levels after struggling for years to regain investor confidence since its 2014 IPO at $38.
CEO Nicholas Woodman said the combined company aims to become an American imaging and optical solutions provider spanning consumer, commercial and defense markets, while continuing GoPro's existing products, subscriptions and cloud platform.