The China-based phone manufacturer is looking to acquire action camera maker GoPro but does not want to overpay.
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.
The latest Hero camera from GoPro features a 2-inch touch display, is waterproof up to 30 feet and only costs $199.
Action cam maker GoPro introduced a new entry-level camera that they simply called the Hero. It is available starting this week and has a price tag of just $199.
According to the news released on their website, this camera is the “perfect GoPro for kids, adventurous social sharers and travelers.”
“HERO is a great first GoPro for people looking to share experiences beyond what a phone can capture,” says Meghan Laffey, GoPro’s SVP of Product. “HERO makes it easy to share ‘wow’ moments at a price that’s perfect for first-time users.”
GoPro’s latest offering carries most of the features that you can find in their higher-end models. This includes a 2-inch colour touch screen, video stabilization and noise control.
It is also waterproof up to 30 feet and is “extremely durable”. The camera is also compatible with GoPro’s existing mounts and accessories.
But with the lower price of course comes lower specs. The Hero only records 1440p at 60fps, far from the 4k resolutions offered by the Hero 5 and 6. Images taken are limited to 10 megapixels. This is lower than the 12 megapixels available from the higher-end models.
Other features that are not available include exposure control and the ability to attach external microphones.
This move is probably the first step from the company towards “resetting expectations”. Earlier this year, they had to layoff 200 staff members as they dissolved their drone division.