Wearable-camera leader GoPro announced an agreement to merge with StarMan Optical for approximately ¥45.6 billion. The company plans to shift toward developing optical equipment for the AI infrastructure sector, and its share price surged following the merger announcement.
GoPro, the wearable-camera maker, announced on 1 September that it would merge with StarMan Optical, a private company under StarMan Holdings, for $285 million (approximately ¥45.6 billion). The transaction will involve a payment of $1.14 per share to GoPro shareholders, who will own approximately 10% of the shares in the post-merger company.
In connection with the merger, GoPro said it plans to expand into developing optical equipment for AI infrastructure and providing technology for the national security sector. In comments by GoPro's founder and CEO, the company also made clear that it would continue supporting its existing consumer products and remain publicly listed.
GoPro's share price surged following the announcement. It rose more than 46% at one point on the day of the announcement and continued to hold gains of more than 40% thereafter. Just 2 days before the transaction, prominent creator Mark Fischbach acquired an 8.5% stake in GoPro, becoming its largest shareholder.
This article covers GoPro's move to become a company focused on the AI infrastructure sector, along with its historical share-price performance and examples of other companies that have undergone similar transformations.