Starman Optical to Acquire GoPro in $285 Million Deal
GoPro went public in 2014 at $24 a share and briefly approached a $4 billion valuation on its first trading day, but the action-camera pioneer struggled for the next decade as demand weakened and ventures into drones and 360-degree cameras failed to restore growth. The proposed combination is more than a financial rescue: it would pair GoPro’s imaging technology and portfolio of more than 2,500 U.S. patents with Starman Optical’s domestic optical-transceiver business, opening markets tied to AI data centers, defense and aerospace.
GoPro and U.S. optical-photonics company Starman Optical signed a definitive merger agreement on Sept. 1, 2026. Existing GoPro shareholders are set to receive $285 million in cash, equal to $1.14 a share before adjustments, and retain about 10% of the combined company. The transaction, subject to shareholder and regulatory approvals, is expected to close by the end of 2026 and repay roughly $92 million of GoPro debt. GoPro shares surged as much as 80% intraday after the announcement, reflecting enthusiasm for the shift toward AI infrastructure.
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The history behind this eventGoPro Weighs Sale or Merger as AI-Fueled Memory Cost Surge Raises Going-Concern Doubts
GoPro, whose business centers on action cameras, has faced growing competition from smartphones, DJI and Insta360 in recent years, increasing the risks posed by its concentrated product portfolio. The company posted a net loss of $93.5 million in 2025. Heavy purchases of high-bandwidth memory, or HBM, by AI data centers have also crowded out conventional memory production, putting pressure on both component prices and supplies and worsening GoPro's business challenges.
In an updated filing with the U.S. Securities and Exchange Commission on June 1, 2026, GoPro said memory quotes surged 80% to 115% in the final week of March, while suppliers notified it of production cuts in April, affecting $24.5 million in noncancelable purchase commitments. The board has hired advisers to evaluate a sale or merger, while the company is also pursuing opportunities in defense and aerospace. On July 8, GoPro separately announced that founder Nicholas Woodman would provide $20 million in financing.
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