Newsletter
Camera company GoPro is being acquired for $285 million after years of financial trouble.
Starman Optical has agreed to merge with GoPro and pay shareholders $1.14 per share. Existing GoPro shareholders will retain about 10% of the combined company, while Starman will own the remaining 90%.
The biggest relief? The deal will also wipe out GoPro’s $92 million debt, giving the struggling company some much-needed breathing room.
The acquisition is expected to close by the end of 2026.
Who exactly is Starman Optical: the company was incorporated only on August 31 and has limited operating history. It is part of Starman Holding, which owns consumer-tech brands including Incase, Incipio and Griffin. Starman Optical makes optical transceivers in the US for AI data centres.
The deets: this is more than a simple takeover. Starman will put fresh money into GoPro, strengthen its finances and help it move beyond action cameras. While GoPro will remain listed on Nasdaq and continue its existing consumer business.
The two companies plan to combine Starman’s optical technology and US manufacturing with GoPro’s imaging expertise to build products for AI infrastructure, defence, aerospace and robotics. If the deal goes through, GoPro could go from being a consumer camera brand to a US-based technology company supplying hardware for AI and national security.
The deal still needs regulatory and shareholder approval and is expected to close by the end of 2026.
What was brewing with GoPro: the company went public in 2014, when its action cameras were flying off shelves and selling millions of units a year. But the growth story soon began to lose momentum.
The company tried expanding into drones and 360-degree cameras, but neither became the next big hit. It eventually returned to premium action cameras for professionals, athletes and serious users. Even then, weaker growth led to multiple rounds of layoffs and a smaller, more focused business.
Then things got serious. In June, GoPro warned that it could run out of money without fresh funding. A month later, founder and CEO Nick Woodman put $20 million of his own money into the company to keep it afloat.
The Starman deal now offers GoPro a financial lifeline, but also a chance to reinvent itself beyond action cameras.
GoPro shares rallied more than 50% after the announcement to trade at $1.33, above Starman’s $1.14 offer price. That could suggest investors are betting on a higher bid, although the deal still needs to go through.
Zoom out: GoPro’s reinvention is part of a broader trend: companies are trying to ride the AI boom by completely changing what they do.
Take CoreWeave. It began as a cryptocurrency mining business before pivoting to cloud computing and AI infrastructure. The move turned it into a major AI player and created billions of dollars in wealth for its founders.
But the strategy doesn’t always work. Allbirds, once known for its sneakers, sold off its footwear business and pivoted towards AI infrastructure, even rebranding as Smartbird. Its stock initially soared, but those gains quickly faded.
GoPro is now making its own AI-era bet. By combining its imaging expertise with Starman’s optical technology and US manufacturing capabilities, the companies want to build hardware for a market that is becoming increasingly strategic.
