The news comes like a bolt from the blue but authoritative sources like Bloomberg are suggesting the crime. GoPro in the last year has recorded a significant decline In the action camera market, shares declined as 36%, reducing its market capitalization to around 700 million dollars. To try to recover, the company also announced that it wanted to expand into the drone industry, but according to analysts the only ray of hope for GoPro seems to be that of an acquisition by another company.
The CEO Nick Woodman said he was open to a sale / merger agreement and that earlier this year, the company hired investment bank JPMorgan Chase & Co. to better advise on a potential sale. A company that once was worth more than 10 billion dollars has now fallen to around 761 million dollars. A potential purchase could ensure that the good name of GoPro is maintained and that the resulting profits are really high. From the GoPro acquisition it could recover 1 billion dollars, based on similar acquisitions such as the one made by Hewlett Packard for Palm, also known for its electronics products that in the 2010 had to fight for survival, following the advent of smartphones.
Xiaomi wants to acquire GoPro
One of the probable buyers it has been reported that it is really about our beloved Xiaomi who is trying to find the right agreements to acquire GoPro, but he does not want to pay more than he should. We do not know if this could be a strange marketing strategy, since GoPro's value has gone up by 8,8% compared to when the news was not official, and we do not even know if Xiaomi is really interested in acquiring GoPro, but it could be in a sense one strategy to emerge in the US market which has been hampering Chinese companies for too long.
