GoPro to merge with optical technology company in $285 million USD deal

GoPro is set to take a significant step beyond consumer cameras, announcing plans to merge with privately held photonics company Starman Optical in a deal valued at US$285 million.

Under the agreement, GoPro shareholders will receive US$1.14 in cash for each share, with existing shareholders retaining an approximately 10 per cent stake in the combined company. GoPro will continue to trade on the Nasdaq once the transaction is completed.

The deal marks a dramatic change of direction for the action-camera maker, which has spent years struggling to convince investors that it can return to sustained growth.

GoPro shares jumped around 40 per cent following news of the proposed merger.

The company said its approximately US$92 million in existing debt will be repaid in full when the transaction closes. It also stressed that its existing consumer products, subscriptions and cloud services will continue to be supported.

The proposed merger is designed to give GoPro access to markets well beyond traditional cameras.

Starman specialises in optical transceivers used in AI data centres. In simple terms, the devices use light to move data at extremely high speeds.

GoPro says Starman's US-made optical transceivers are expected to become part of its product portfolio, opening opportunities in areas including AI infrastructure, defence, government, robotics and aerospace.

The companies also intend to combine GoPro's imaging and optical intellectual property with Starman's manufacturing capabilities in the United States.

"Advanced optics and imaging are essential to AI, national security, and the broader economy," said Charles Tebele, CEO of Starman Holding.

Tebele said the merger would provide an opportunity to bring production of critical optical components back to the US.

For GoPro, the deal represents an attempt to diversify its business while retaining its established consumer camera operations.

"We expect this merger to enable GoPro to grow across consumer, commercial and defense markets as a leading American imaging and optical solutions company," said GoPro founder and CEO Nicholas Woodman.

The announcement comes after a particularly turbulent period for GoPro investors.

The company went public in 2014 at US$38 per share but subsequently endured a prolonged decline in its market value, with its shares trading below US$1 as recently as last week.

The proposed US$1.14-per-share cash payment therefore represents a significant improvement over the company's recent trading levels, although GoPro shares had risen above the offer price following the announcement.

The deal also comes just days after YouTuber and filmmaker Markiplier, whose real name is Mark Fischbach, became GoPro's largest individual shareholder after acquiring an 8.5 per cent stake.

Fischbach had argued that GoPro was undervalued. His investment has therefore arrived at an interesting time, with the proposed transaction potentially providing a substantial uplift in value compared with the price at which he acquired the shares.

BlackRock has also disclosed a 6.4 per cent stake in the company.

Woodman himself recently provided GoPro with US$20 million through stock purchases as the company navigated its financial difficulties.

The merger has been approved by the boards of both companies and is expected to close by the end of 2026, subject to regulatory approval.