News revealed earlier today showed that GoPro wasn't in the best condition as a company. On top of dropping the price of the Hero6 camera, nearly 300 jobs were cut and the company declared they are leaving the drone business behind. That's not the end of the bad news, it seems. The company's stock has taken a nosedive and it turns out the company is putting itself up for sale.
CNBC reports that GoPro has hired JP Morgan Chase to help with the process of selling the company. GoPro CEO Nick Woodman says that he would consider a partnership as well.
"If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at," Woodman said.
I spoke with our financial analyst and CEO, Asif Khan, about the news of GoPro's sale and here is his Game Trader Hot Take:
"GoPro's stock now values the company at less
"Don't buy the company just because they are trying to sell. They have hired JP Morgan to try to sell the company. They don't currently have any bids that they are able to acknowledge. This appears to be a desperation move for a company with terrible margins and a dwindling competitive advantage. It is not outside of the realm of possibility that another company would acquire the brand, but that is hard to believe given the company's current financial state. They are unprofitable and still trade well above their book value. This is a purely speculative stock at this point and