In outdoor sports circles, GoPro is a well-known sports video camera with a market value of up to US$10 billion once. However, GoPro's share price has been declining and the market value has shrunk to about 700 million U.S. dollars now, after successively experiencing unsuccessful drone product failures, over-quota pricing, and the influx of more entry-level users being blocked by more brands. So GoPro's CEO Nick Woodman also said that he welcomes the purchase transaction. According to media reports, Xiaomi from China will likely become the new owner of this sports camera giant.
This is not really the first time GoPro has found a new owner. After the investment bank made contact with the Chinese drone manufacturer DJI on this matter, DJI at the end did not initiate an acquisition of GoPro. DJI did not consider the acquisition of GoPro will give it explanatory value. And Xiaomi, we know that in addition to the main business of smart phones, they also invested in a large number of consumer electronics companies, including a lower-priced sports camera, the Mijia Xiaomi Action Sport Camera, and also invested the Xiaoyi Technology which also has corresponding sports camera products.
Therefore, it is not a strange thing that Xiaomi is now trying to acquire GoPro. For Xiaomi, the acquisition of GoPro will allow it to quickly establish its advantages in the sports camera field. For example, GoPro's market brand, excellent performance products and related technologies are places where Xiaomi is worth investing. For GoPro, with Xiaomi's brand and channels, it may be possible to reverse the decline again. After all, the importance of the Chinese market is more than necessary. Everyone knows clearly.
GoPro's share price soared by 8.8% in the news that Xiaomi might acquire GoPro. This shows that the market has responded positively. But then again, according to analysts, this year, GoPro's sales will fall again by 8%, still unable to make profits, so the acquisition can be successful or not is not sure yet.
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