GoPro, once valued at $11 billion, sells for $285 million as it reinvents itself

GoPro, the brand that turned cameras mounted on helmets and bicycles into a global category, is preparing for a drastic change of direction. The company that reached an $11 billion valuation in 2014 now plans to merge with Starman Optical in a deal worth $285 million.

Nick Woodman launched the idea in 2002 after struggling to record his surfing in Australia. He worked on a solution in his parents’ garage and introduced the first analog Hero camera in 2004. The breakthrough came in 2010 with a high-definition version that created its own market and spread rapidly through YouTube.

GoPro’s success brought a sharp expansion in staff and costs. The company also tried to become an entertainment and media business, but closed that venture in 2017 after spending hundreds of millions of dollars. Its Karma drone added another blow in 2016, when a serious battery fault caused devices to fall during flight. GoPro recalled the product and canceled the project in 2018.

Smartphone cameras improved rapidly while competitors such as DJI and Insta360 gained ground. By June, GoPro warned that it could run out of money. Its shares fell to a historic low of $0.60 before Woodman injected $20 million of his own money in July to keep the company afloat.

Under the proposed merger, which GoPro expects to complete by the end of the year, shareholders would receive $1.14 in cash per share and retain 10% of the combined company. The transaction would eliminate GoPro’s $92 million debt. YouTuber Markiplier bought an 8.5% stake shortly before the announcement, becoming the company’s largest individual shareholder and helping drive its Wall Street valuation up 128%. GoPro now aims to reposition itself as a supplier of components for AI data centers.