Things have not been the best for action camera maker GoPro. It appears that its future may rely on the company being sold and there seems to be a company interested in acquiring it.
Sources have said that Xiaomi has already considered what it would offer to purchase the camera maker, but is taking its time making a formal offer. GoPro could sell for the price of $1 billion, which is what HP paid in 2010 for Palm.
Xiaomi is known worldwide as a maker of smartphones, but domestically in China, it sells other devices such as drones, electric bicycles, and much more.
The company is also selling its own lineup of cameras known as Yi Action Camera. By acquiring GoPro Xiaomi would gain access to the patents the camera maker has and absorb a major competitor in the industry. For GoPro, a purchase could mean the difference between continuing as an entity due to its financial problems.
GoPro was founded in 2002 by Nick Woodman who is currently the CEO. It quickly became popular and expanded its product lineup to drones and 360-degree cameras.
Although the popularity of its products remained strong for several years, the company has not done well of late.
In 2016, the company slashed 15% of its workforce in a restructuring plan because of the decline in sales for its cameras. At the same time, the company was struggling with it Karma drones as over 2,500 needed to be recalled due to the battery failing.
In 2017, GoPro cut another 270 jobs and in January of this year announced that it would shutter its drone business and cut 300 more jobs.
Woodman admitted during a recent interview that he would be willing to sell the company, saying that it would be irresponsible not to. If any opportunity were to come where GoPro would merge with another larger company that would help to give scale to the business as well as provide better return on investment for the company’s investors than as such an independent business, he would be willing to accept it.
There is not any current information about when or even if a deal will take place between Xiaomi and GoPro, and remains unclear if the Chinese company plans to use the brand GoPro or wants to merge existing technologies and then release an entirely new line of action cameras.