GoPro Merges with Starman Optical, Pivots into AI Data Centers and Defense in $285M Deal

GoPro joins AI bonanza with pivot into data centers as shares skyrocket 38%

* GoPro announced it would merge with Starman Optical, a private photonics company. * The company will move into AI data center and defense markets. * Youtuber Markiplier recently acquired a massive 8.5% stake in GoPro. In this article * GPRO Follow your favorite stocksCREATE FREE ACCOUNT GoPro Here 8 Black Source: GoPro GoPro is joining the artificial intelligence craze. The action camera maker announced on Tuesday it would enter into a definitive merger with Starman Optical, a private photonics company, and expand into AI data center and defense markets, according to a release. "We expect this merger to enable GoPro to grow across consumer, commercial and defense markets as a leading American imaging and optical solutions company, addressing important areas of national security related to cameras, optics and AI infrastructure," said GoPro CEO Nicholas Woodman in the release. Shares rocketed 38% following the news. GoPro declined to share additional details about the move. As part of the deal, the company's shareholders will receive a $285 million cash payment, or $1.14 per share, and the stock will remain listed on the Nasdaq. One of the shareholders benefiting most from the news is Youtuber Markiplier, who acquired a massive 8.5% stake, according to a July 13 filing. Private equity firm BlackRock also disclosed a 6.4% stake earlier this summer. Since going public back in 2014, when it debuted at $38 a share, GoPro has struggled to gain the confidence of investors in the years since, trading at penny stock levels until a few days ago. The company also said its $92 million debt will be repaid at the deal closing, and that it "will continue to fully support its existing consumer products and its subscription and cloud platform while investing in growth and a broader, diversified product roadmap." Read more CNBC tech news Stock Chart IconStock chart icon GoPro stock chart. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

GoPro says it's moving into AI data centers as part of a $285 million merger - Engadget

It's also planning a push into defense, robotics and aerospace. GoPro is the latest surprising name to move into the AI data center market amid a merger with an optical-photonics company called Starman Optical. The shareholders of GoPro, which will remain publicly listed, will receive $285 million when the deal closes and retain around 10 percent ownership. GoPro's outstanding debt of around $92 million will be paid too. The merger is subject to shareholder agreement, as well as regulatory approvals and closing conditions. GoPro expects the deal to close by the end of 2026. Along with continuing to make its synonymous action cameras and run its subscription and cloud services, GoPro plans to move into new markets. Starman's optical transceivers are expected to fall under its umbrella, "extending the Company's reach into the large and rapidly growing market for AI infrastructure in optical transceivers," according to a press release. GoPro is also planning a push into the defense, government, robotics and aerospace sectors, bolstered by the combined company's IP, optics and imaging capabilities. GoPro is following in the footsteps of shoemaker Allbirds by making an unexpected shift into AI infrastructure. As Reuters notes, GoPro briefly reached a valuation of $4 billion on its first day as a publicly traded company in 2014. Its stock has struggled in recent years, but the share price received a boost on Monday when it was revealed that YouTuber and filmmaker Markiplier (Mark Fischbach) had become GoPro's largest individual shareholder after acquiring an 8.5 percent stake.

Optical Company Starman Buys GoPro for $285 Million, Plans Move Into AI, Defense, and National Security

GoPro has concluded its months-long search for a solution to its financial woes. Privately-held optical-photonics company Starman Optical, Inc. (Starman) has entered into a definitive merger agreement with GoPro, Inc., for $285 million. As part of the agreement, GoPro shareholders will receive an aggregate cash payment of $285 million, or $1.14 per share. As of writing, GoPro's stock is trading at $1.26 per share and reached as high as $1.58 today. GoPro's existing shareholders will maintain ownership of approximately 10 percent of the company's outstanding shares. It will be interesting to see what happens with Mark Fischbach, also known as Markiplier, who just became GoPro's largest single shareholder after acquiring 8.5 percent of GoPro's stock. It's very fortunate timing for Fischbach, who argued that GoPro was undervalued. GoPro was trading at under 60 cents per share just last week. GoPro's current debt, which is approximately $92 million, will be repaid in full when the merger closes. GoPro will remain a publicly listed company on NASDAQ. GoPro adds that it will continue to fully support its existing consumer products, subscriptions, and cloud product offerings. GoPro says that Starman's U.S.-made optical transceivers are expected to be added to GoPro's product lineup, which GoPro says will help it reach new markets, like AI infrastructure. Once the transaction closes, the combined company says it will "leverage its IP, optics, and imaging capabilities across defense, government, robotics and aerospace markets," which builds upon growing demand for U.S.-made products in these sectors. This is an important point to consider, as the current U.S. administration has proven hellbent on cracking down on Chinese-made technologies. "Advanced optics and imaging are essential to AI, national security, and the broader economy, yet much of the critical hardware supporting these technologies continues to be manufactured overseas," says Charles Tebele, Chief Executive Officer of Starman Holding. Starman is a leading supplier of optical transceivers used in AI data centers. These products send data using light. "The combination of GoPro's world-class optical expertise and intellectual property with Starman's advanced transceiver capabilities and U.S. manufacturing platform creates a unique opportunity. Together, we intend to bring production of these critical components back to the United States," Tebele continues. "We expect this merger to enable GoPro to grow across consumer, commercial and defense markets as a leading American imaging and optical solutions company, addressing important areas of national security related to cameras, optics and AI infrastructure. We're excited to combine with the Starman team to capitalize on this opportunity and play an important role in America's future," says Nicholas Woodman, GoPro's Founder and CEO. Woodman recently loaned his company $20 million through stock purchases, which will presumably be paid off as part of the debt settlement plan. GoPro's Board of Directors and Starman's Board have approved the deal, and it is expected to close by the end of this year, subject to regulatory approvals. Image creditsGoPro. Header photo created a background asset licensed via Depositphotos.com.

Shoes, Karaoke Machines and Action Cameras Find a Second Act in AI | PYMNTS.com

GoPro is the latest unlikely addition, following Allbirds, which sold its footwear business to pursue AI compute, and Singing Machine, which moved from karaoke machines into AI logistics. GoPro agreed this week to merge with Starman Optical, a private maker of optical transceivers used inside AI data centers, in a deal that hands Starman a 90% stake in the combined company, CNBC reported Tuesday (Sept. 1). The deal wipes out roughly $92 million of GoPro's debt, according to a Tuesday press release. GoPro shareholders get $285 million in cash, keep about 10% of the company, and watch it pivot into AI infrastructure, defense, robotics and aerospace while GoPro keeps making cameras on the side. "We expect this merger to enable GoPro to grow across consumer, commercial and defense markets as a leading American imaging and optical solutions company," Founder and CEO Nicholas Woodman said in the release. Shares jumped more than 50% on the news, CNBC reported. GoPro isn't the first brand to try this trick. Allbirds sold its entire shoe business for $39 million in April, then relaunched as NewBird AI and promised to rent out AI computing power, CNBC reported separately April 15. The stock popped 582% the day of the announcement. Since then, there's been no confirmed public update on whether NewBird AI has actually acquired GPU hardware, signed a data center deal, or landed a single customer, the concrete steps the company itself said would come next. One of These Pivots Has Already Curdled Singing Machine shows how this story can end. The karaoke machine maker rebranded as Algorhythm Holdings and said in February it had built AI logistics technology, The Wall Street Journal reported Feb. 12. The stock surged 30% overnight to $1.08. Seven months later, it's down more than 75% to 25 cents. The lesson is simple. A stock pop on pivot day measures excitement, not whether the company can compete against players spending real money on AI. Consider CoreWeave, a company that has defined the GPU cloud category. In August, CoreWeave guided its 2026 capital spending to between $35 billion and $39 billion, up from an earlier $31 billion to $35 billion range, CNBC reported Aug. 11. Allbirds raised $50 million total for its pivot, and a single high-end Nvidia chip alone can cost $30,000 to $40,000. That means the funding buys a modest cluster of GPUs, not the data center footprint and long-term contracts that actual GPU-as-a-Service providers need to compete, TheNextWeb reported April 17. What Actually Makes GoPro's Bet Different GoPro's version has one thing Allbirds and Singing Machine didn't: an actual product already shipping. Starman's transceivers debuted at an industry conference in March and are built for hardware from Nvidia, AMD and Broadcom that AI data centers already run, CineD reported Tuesday. GoPro also brings more than 2,500 patents and a camera business that keeps running, unlike Allbirds, which sold off its actual product to fund the leap. For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.