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.

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