GoPro Considering Various Alternatives, Including Potential Sale; Stock Soars

GoPro, the action camera manufacturer, announced on Monday its plans to explore various strategic options, which might include a potential sale or merger of the company, resulting in a more than 27% rise in its shares during after-hours trading.

This announcement follows nearly a month after GoPro indicated it had partnered with consulting firm Oliver Wyman to explore new market prospects for its technology in the defense and aerospace sectors.

The California-based company revealed that it has received multiple unsolicited strategic inquiries since then, prompting its board to authorize the engagement of a financial advisor to assist in the evaluation process.
Also Read: Oil prices maintain gains as Trump raises doubts about Iran ceasefire

In a separate announcement on Monday, GoPro disclosed a larger adjusted loss for the first quarter compared to the previous year, along with a decrease in total revenue, as hardware, subscription, and service revenues all declined during the quarter.

For the quarter ending on March 31, the company recorded a loss of 35 cents per share, an increase from a loss of 12 cents per share the year prior. GoPro’s market capitalization stood at $224 million as of its last closing, according to data from LSEG.

In February, GoPro appointed insider Brian Tratt as its new chief financial officer, succeeding Brian McGee.