In midst of doldrums at GoPro, the company’s shares have jumped as much as 8.8%. The reason is said to be the recent reports of Xiaomi acquiring the action camera maker.
At a time, GoPro valued at more than $10 billion, then their market capitalization has fallen to about $761 million. During that period, the company has been finding it difficult to retain their shareholders. The company, to boost revenues, had to lay off 20% employees in its drone business.
According to a report by The Information, citing a source in direct knowledge of the development, Xiaomi has considered the offer to pay $1 Billion to acquire GoPro. The camera maker is currently has a market capitalisation of $700 million.
The report also suggests that Xiaomi doesn’t want to overpay and is still considering, which means that the deal is in early stages as of now. Also, we must note that Xiaomi already competes against GoPro Hero series with its Yi action cameras.
GoPro is open for a good deal
This is not the first time when GoPro is in talks for their acquisition. Earlier this year, in an email to Reuters, the company stated, “we've always been clear that we are open to any opportunity that will help us scale our mission. JP Morgan is our banker, but there is no active engagement to sell.”
Furthermore, a Bloomberg report also suggests that Nick Woodman, CEO of GoPro has said they are open to a deal.
We cannot deny the fact that GoPro has made a reputation where it's been a constant synonym for action cameras. It's fair to leverage that reputation and expect a good deal out of it.
As of now, neither GoPro nor Xiaomi have confirmed the reports of an acquisition.
source http://www.techradar.com/news/xiaomi-is-reportedly-mulling-over-acquiring-gopro
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