I hope I wasn’t being premature when I announced the other day that “GoPro Was Back” having appointed a new Australian PR agency. I have had a couple of brief conversations with them and all seemed hunky dory, with promised review product on the way in the form of the new Mission series. It’s been very quiet the last week or so though.
My spies in the United States of Americaland tell me that all is not happy, happy at Chez GoPro, however. In fact, there are whispers Nicholas Woodman, the founder and major shareholder is thinking of selling the company.
GoPro says it is “formally reviewing strategic options, including a potential sale or merger”, marking a potentially major turning point for one of the most recognisable brands in the world of video and imaging in general.
What we do know is that its Board of Directors has authorized management to engage a financial advisor and evaluate a range of options. Which I reckon might be corporate speak for “How do we get out of this mess with the least damage to all concerned”.
The truth is that even with the US putting the knockers on DJI sales of new products in the country, together DJI and Insta360 has pummelled GoPro with arguably better product over the last few years. The rise and rise of the smartphone cannot be discounted either, although there are indications users are starting to turn towards more compact dedicated cameras of late.
GoPro shares did jump higher in after-hours trading, with those in the know suggesting investors reacted to the possibility of a larger technology or imaging company stepping in. But who would that be if so?
DJI would be the logical choice as this would then also potentially circumnavigate its issues with security the US Government is so wary of, and it would be quite easy I’d imagine melding the current GoPro lineup into the DJI range. Or indeed, keep the GoPro name and rebrand a second-tier range of products maybe?
Garmin, already strong in the outdoors market is another possibility.
And would the company stay in its current niche, or as has been rumoured, would it branch out into other areas such as aerospace or defence?
Or of course, the vultures – sorry, a “private equity firm” – could just step in and strip the assets for a quick profit.
We’ll just have to wait and see.
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