GoPro shares rocketed 38% after the action-camera maker announced a merger with private photonics company Starman Optical, pivoting into AI data centers and defense. Shareholders will get a $285 million cash payment, and the deal follows recent stake disclosures from Youtuber Markiplier and BlackRock.
GoPro shares jump on AI pivot
GoPro is leaving its camera-only identity behind. The company said Tuesday it would enter a definitive merger with Starman Optical, a private photonics company, and expand into AI data center and defense markets. GoPro declined to share additional details about the move.
GoPro shares rocketed 38% following the announcement. As part of the deal, GoPro shareholders will receive a $285 million cash payment, or $1.14 per share, and the stock will stay listed on the exchange.
Large stakes disclosed before the deal
Two shareholders had already disclosed sizable stakes. Youtuber Markiplier acquired an 8.5% stake in GoPro, according to a July 13 filing. BlackRock also disclosed a 6.4% stake earlier this summer.
GoPro went public in 2014 at $38 a share and has since struggled to gain investor confidence, trading at penny stock levels until a few days ago. The company said its $92 million in debt will be repaid at the deal's closing, and that it will continue supporting its existing consumer products, subscription, and cloud platform while investing in a broader product roadmap.
Part of a wider trend
GoPro isn't the only familiar consumer name chasing the AI boom. In April, struggling retailer Allbirds announced it would pivot away from its sustainable shoes business into AI compute and hardware, rebranding itself as Smartbird.
Source: CNBC
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