GoPro is not doing well financially. Part of reason are smartphone makers that are building devices capable of capturing high-quality videos. But coming to the rescue of one of the leading names in the action camera business is Xiaomi. The China-based manufacturer already has a number of products under its umbrella, including action cameras.
According to The Information, one potential candidate for buying GoPro is Xiaomi. Given that the company already has a range of other offerings including drones, electric bikes, air purifiers and other home appliances, the acquisition of GoPro will add to the company’s portfolio.
GoPro put itself on sale last year. However, until now it has not been able to lure any suitors. As the report says, GoPro stocks plummeted 36 percent, cutting its market capitalization to $700 million. The investors are hopeful that an acquisition would help lift the prices of the company.
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It is estimated that a potential acquisition of GoPro could possibly fetch $1 billion, based on what Hewlett Packard’s deal for another struggling electronics maker in 2010. A person familiar with the matter told the publication that Xiaomi has weighed whether to make an offer, but the company does not want to pay too much for the struggling camera maker.
Earlier, it was reported that drone maker DJI was mulling a deal several months ago, however, it didn’t pursue the deal as it saw no value in the company. If Xiaomi considers the deal, it would allow the Chinese giant to expand in the US market as well, where the company is yet to establish itself properly.