Report: Xiaomi Could Acquire GoPro For $1 Billion

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The China-based phone manufacturer is looking to acquire action camera maker GoPro but does not want to overpay.

GoPro Hero
(Credit: GoPro)

Despite GoPro dominating that market since its inception, it’s hasn’t been easy for the company in the recent years.

Once valued at over USD10 billion, GoPro’s market cap has fallen to only about USD761 million. Their foray into the drone industry didn’t do so well either. In January, the company shut down its drone department and cut down 20% of its workforce. And now it could be looking to sell the brand.

According to a report by The Information, Xiaomi is considering making an offer to acquire GoPro. This is probably not for from impossible since earlier this year, GoPro CEO Nick Woodman has publicly said that he is open to a deal.

Apparently, a source familiar with the development has shared Xiaomi’s interest in paying as high as $1 billion for the action camera maker. They reportedly will not pay anything more than that. The source also said DJI was supposedly under pressure by bankers to acquire GoPro prior to Xiaomi. However, the deal wasn’t finalised as the Chinese drone manufacturer didn’t see value in the company.

Neither of the companies has confirmed the acquisition plans. If this deal does happen, it will definitely be interesting to see what Xiaomi’s next steps are considering it has similar products. The China-based manufacturer sells Yi Action Cameras that rivals GoPro Hero cameras.

In a bid to compete with the Yi Action Cameras, GoPro also released cheaper Hero Camera for just $199 last month.