GoPro might find itself getting acquired by a massive Chinese hardware and software company. Xiaomi is reportedly deciding whether or not it should pick up the action camera maker.
While no formal offer has been made, the deal would make sense for both sides. GoPro is facing declining revenue, and earlier this year it was forced to discontinue its drone and cut staff. Meanwhile, Xiaomi is trying to make moves around the world. Picking up a company with experience in imaging technology could touch many areas of its business.
There’s also some experience with action cameras. YI Technology isn’t owned by Xiaomi, but the company did make an early investment to launch the startup. The fast-growing brand on Amazon makes action cameras, home security cameras, and more. Xiaomi appears to want more than an investment. It wants ownership.
When changes in operations were announced several months ago, CEO Nick Woodman confirmed selling the company is on the table.
Some believe GoPro could be purchased for as much as $1 billion despite being a struggling company. Xiaomi, according to The Information, doesn’t want to spend more money than necessary. It’s doesn’t appear negotiations between the two companies have taken place as Xiaomi is still mulling the decision to submit an offer.
As of late, we’ve seen GoPro pivot its focus to a wider audience. The company is no longer relying so heavily on thrill seekers. The Hero is a new action camera with high-end features that costs just $199. GoPro also readjusted pricing across all products.
Xiaomi is a private company, but GoPro is public and shares surged upon reports of a potential deal coming out. An acquisition is about the only thing left that can save its stock price.