GoPro agrees to $285m acquisition after decade-long decline

Action camera pioneer GoPro has agreed to a $285 million cash acquisition by private optical-photonics company Starman Optical, following years of decline.

Under the terms of the merger, GoPro shareholders will receive $1.14 per share, representing a roughly 30% premium over the company’s previous closing price, while retaining a 10% stake in the combined entity. The deal also fully settles GoPro’s $92 million in outstanding debt.

Following the announcement, GoPro’s shares surged by as much as 80% in pre-market trading, offering a dramatic reversal for a stock that had lost roughly 99% of its value since peaking at $93 following its 2014 initial public offering.

Why Is GoPro being acquired?

The buyout follows years of declining revenue and operational pressure. Since its market debut, GoPro struggled to maintain momentum as smartphone cameras improved exponentially, capturing everyday video creation and eating into the action camera market.

Compounding these troubles, the company faced aggressive competition from Chinese rivals such as DJI and Insta360, leading to a 31% drop in second-quarter revenue and surging net losses. In June, management acknowledged substantial doubt regarding the company’s ability to continue as a going concern without a strategic intervention.

For Starman Optical, the acquisition is driven more by strategic technology than by consumer cameras. In particular, Starman intends to leverage GoPro’s massive portfolio of over 2,500 US patents in optics, imaging and hardware.

By integrating Starman’s advanced optical transceivers into components vital for AI data centres and high-speed communications, the combined company aims to pivot into lucrative commercial, defence and national security markets while bringing critical component manufacturing back to the United States.

Despite the major corporate overhaul, everyday users of GoPro equipment can expect stability. GoPro will remain a publicly listed company on Nasdaq and has explicitly confirmed that it will continue to fully support its existing line of consumer action cameras, mobile apps and cloud subscription platforms.

Rather than phasing out the famous cameras, the merger aims to secure the brand’s long-term financial health while expanding its technological horizons into AI and aerospace infrastructure.