Digital camera-maker GoPro is reported to be contemplating a sale after struggling a steep decline in vacation gross sales.
“If there are alternatives for us to unite with a much bigger father or mother firm to scale GoPro even greater, that’s one thing that we might take a look at,” GoPro boss Nicholas Woodman told CNBC.
GoPro earlier stated income fell virtually forty% within the fourth quarter to $340m in comparison with the identical interval in 2016.
GoPro additionally introduced redundancies and stated it will exit the drone enterprise.
Shares plunged virtually 1 / 4 following the announcement, however began to rebound on the concept of a sale.
Reviews have instructed that GoPro has employed JP Morgan Chase to discover a sale, however Mr Woodman has denied this.
The agency stated it’s dedicated to “turning round” the enterprise.
GoPro reported losses in 2015 and 2016.
This yr, weak gross sales through the essential vacation season pressured it to slash costs of key merchandise, together with the HERO5 Black digital camera, in an effort to extend demand. The transfer value about $80m, GoPro stated.
The corporate is slicing greater than 250 employees from its workforce, which numbered greater than 1,250 on the finish of September.
It stated it’ll cease making aerial cameras, citing an “extraordinarily aggressive” market and hostile regulatory local weather.
The wage of chief government Nicholas Woodman has additionally been minimize to only $1 in an effort to scale back bills.
He hoped the actions would return the agency to profitability within the second half of 2018.
GoPro will launch extra detailed monetary particulars in February.
Based in 2004, the California-based mostly agency is understood for its small, moveable video cameras.
Its shares surged after itemizing in New York in 2014 however have fallen extra just lately following elevated competitors from smartphones.
There have additionally been points with some merchandise, together with the recall of its Karma aerial digital camera in 2016, after sudden crashes.
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