GoPro, an American sports camera manufacturer, was once the industry's 'star enterprise', but in the end it was in short supply. Now it is in a dilemma. According to the latest news from foreign media, it is reported that China Xiaomi is preparing to acquire GoPro, which has caused the stock price to rise sharply on Thursday. .
According to Bloomberg News, on Thursday, the US authoritative technology media TheInformation reported that Xiaomi may acquire GoPro, and GoPro's share price quickly responded, soaring by 8.8%.
However, the stock price rose later and the closing price rose about 7% on the same day.
According to informed sources, Xiaomi has considered acquiring GoPro but is not willing to pay high prices.
Whether Xiaomi and GoPro had an acquisition talk and what price Xiaomi was willing to pay was still unknown.
According to GoPro’s closing price on Thursday, its capital market value was around US$760 million.
GoPro mainly develops sports cameras, which are expensively priced and once attracted the attention of the industry. The company’s valuation reached a maximum of US$10 billion. However, as the business is in trouble, the company’s valuation has plummeted.
In the field of sports cameras, GoPro entered earlier, but excessive product pricing has weakened its market influence. Later, other competitors found that sports cameras were actually a low threshold industry, and companies such as HTC subsequently introduced them. Sports camera, the price is far lower than GoPro. GoPro's first-mover advantage gradually lost.
After relying on sports cameras to “get home”, GoPro did not find follow-up new business, supporting the development of the company and eventually becoming a fast-growing startup company.
Market analysts pointed out that GoPro's brand has a certain appeal for the acquirer. In addition, current product sales can become a stable source of profit.
According to reports, if GoPro sells successfully, it may get a price of about 1 billion US dollars, which is equivalent to Hewlett-Packard’s purchase of consumer electronics device maker Palm in 2010.
It is not known whether Millet can accept the $1 billion price.
In addition to the main business of smart phones, Xiaomi invested in many of China's consumer electronics companies and developed some uniquely designed products. These products are also sold in Xiaomi's shopping mall.
It should be pointed out that many of the small consumer electronics products that are considered to be from Xiaomi Company are not related to Xiaomi and were developed by the invested company, but only rely on Xiaomi's marketing and sales resources.
A company invested by Xiaomi has launched sports cameras in the past, but it is still not clear whether its sales volume is welcomed by Chinese consumers.
According to another report, Nick Woodman, CEO of GoPro, stated earlier that he is open to outside acquisitions. In addition, the company previously invited JP Morgan Chase Bank as a consultant to transfer transactions.