14 DAY TRIAL // The information that Xiaomi has been thinking about making an offer for GoPro Inc. has sent the stocks rocketing for the American company.
GoPro Inc. had a very bumpy ride, with its stocks going up and down in the past few years, but on a downward trend. In fact, the company was doing much better back in 2014, when they were valued at almost 10 billion dollars.
Today, GoPro is valued at about $850 million, and suffered loses of about $182 million in 2017. Despite the fact that we see ads for GoPro cameras all around, the company has been declining steadily. The main reason is the influx of similar products coming from China and Europe that have really good quality and much lower prices.
Just a consideration, not a proposal
It’s interesting to see how the stock market reacts even to the smallest of impulses. In this case, Xiaomi only considered making a proposition for GoPro. The Chinese company didn’t advance a number; they just had an internal discussion.
At least this is the rumor according to a report on Bloomberg. In any case, the stock price for GoPro has skyrocketed with %8, although the excitement has slowed down a bit. It’s also important to mention that the prospective buyout of an American company by a Chinese company was met with enthusiasm and not the other way around.
And, to be fair, even if Xiaomi makes such an offer, it’s unlikely that they would be allowed to purchase an American company. The environment in the United States right now is somewhat anti-Chinese. For example, Huawei has been blocked from selling their products in the US.
In any case, it’s clear that GoPro Inc. needs to do something drastic to survive with all the competition they're getting because their value is continuously dropping and it’s going to be just a matter of time until someone actually buys them.