GoPro’s search for a potential buyer or merger has found a solution to the action camera maker's financial struggles. On Tuesday, September 1, GoPro announced that it has entered into a definitive agreement to merge with Starman Optical, Inc., a US-based optical photonics company.
The merger will keep GoPro’s existing presence in the consumer camera space, leaving the company's action cameras, 360 cameras, subscriptions, and software intact. But the merger aims to help push GoPro into AI data centers, government, defense, and aerospace industries while rescuing the action camera giant’s struggling finances and leaving GoPro largely debt-free.
While the GoPro name is well known, Starman Optical is less so. The US-based company builds high-speed optical transceivers and similar technologies. The company’s optical transceivers are used in AI infrastructure and data centers.
GoPro says that the company will continue in the consumer camera space, but the merger will also position the brand to expand into other areas, including the rise in demand for AI infrastructure.
"We expect this merger to enable GoPro to grow across consumer, commercial and defense markets as a leading American imaging and optical solutions company, addressing important areas of national security related to cameras, optics and AI infrastructure,” GoPro CEO and founder Nicholas Woodman said in the announcement. “We're excited to combine with the Starman team to capitalize on this opportunity and play an important role in America's future."
While GoPro is a publicly traded company, Starman Optical is privately held. The action camera brand will remain on the US stock market following the merger, with the current stockholders taking about a ten percent stake in ownership.
The exchange will also give shareholders a $285 million cash payment, or about $1.14 per share. After the announcement, the company's stock that had previously been sitting below the $1 mark and was at risk of becoming delisted, surged to $1.40 a share.
GoPro says that its current $92 million in debt will be largely repaid at closing, which would give the action camera maker a clean balance sheet.
The proposed merger has been approved by both companies’ boards, but is still subject to regulatory approvals. If everything goes as planned, the two companies will merge before the end of 2026.
GoPro has been struggling with sluggish sales recently, sharing a stock market warning that the company could face a potential bankruptcy if its finances did not turn around.
GoPro announced that it was looking for a potential buyer or merger in May. The proposed merger with Starman Optical will leave the action camera maker without debt moving forward.
The announcement of the merger agreement comes on the heels of GoPro's first mirrorless camera, the Mission 1 Pro ILS, which opened for pre-orders last week.
Take a look at the new GoPro Mission 1 Pro ILS mirrorless camera, or browse the best GoPro cameras.
