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GoPro's CEO says the company is open to a sale, not actively shopping itself
- GoPro CEO Nick Woodward said the company may look to “unite with a bigger parent company.”
- Woodward later denied reports that JPMorgan Chase was assisting the company in finding a buyer.
- GoPro also announced today it was firing 300 people and exiting the drone business.
Early today GoPro announced lay offs of up to 300 people and the company’s exit from the drone business. Now rumors the action camera company may put itself up for sale are swirling.
Earlier today, CEO Nick Woodman told CNBC GoPro it would look at opportunities to “unite with a bigger parent company.” He later told Bloomberg the company is not actively looking for a buyer. He also denied earlier reports that JPMorgan Chase was assisting in finding a buyer.
“I can confirm that JPMorgan is in fact our banker, but we have not engaged them to help us sell the company,” said Woodman.
“With that said, if there were any opportunity for GoPro to partner up with a larger organization that could help us scale the company, scale our brand and reach to consumers, then that’s certainly something that we would consider. But, it’s not something we’re actively engaged in at the moment.”
If the company decides to sell, it’s not immediately clear who might be interested. Despite a strong start, GoPro has fallen on hard times. It reported several quarters of declining revenues as its core business has taken a hit. An unsuccessful attempt at the drone business also hurt the company’s bottom line. GoPro’s initial valuation was $3 billion when it went public in 2014. As of Monday afternoon, its market cap fell to approximately $1 billion.
It may be too early to say the company is putting itself up for sale, but the writing certainly seems to be on the wall.