RESOLVING THE LEDGER
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GoPro is joining the artificial intelligence craze.
The action camera maker announced on Tuesday it would enter into a definitive merger with Starman Optical, a private photonics company, and expand into AI data center and defense markets, according to a release.
"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," said GoPro CEO Nicholas Woodman in the release.
As part of the deal, the company's shareholders will receive a $285 million cash payment, or $1.14 per share, and the stock will remain listed on the Nasdaq.
One of the shareholders benefiting most from the news is Youtuber Markiplier, who acquired a massive 8.5% stake, according to a July 13 filing. Private equity firm BlackRock also disclosed a 6.4% stake earlier this summer.
Since going public back in 2014, when it debuted at $38 a share, GoPro has struggled to gain the confidence of investors in the years since, trading at penny stock levels until a few days ago.
The company also said its $92 million debt will be repaid at the deal closing, and that it "will continue to fully support its existing consumer products and its subscription and cloud platform while investing in growth and a broader, diversified product roadmap."
GoPro isn't the only well-known consumer name eyeing the AI boom.
In April, struggling retailer Allbirds announced it would pivot away from making its sustainable shoes into AI compute and hardware, rebranding itself as Smartbird.
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