GoPro’s Starman Optical merger offers shareholders cash and a stake in the combined business.

  • GoPro shareholders will get $285 million in cash and keep about 10% of the merged company. 
  • The deal aims to expand GoPro into AI, commercial, and defense markets while its existing products and services continue as usual. 
  • GoPro began a strategic review in March, exploring a sale or merger.

GoPro Inc. (GPRO) stock is on track for its best week ever as investors digest the company’s planned merger with Starman Optical. The deal could push GoPro beyond consumer cameras into AI infrastructure, defense, and government markets, while also eliminating roughly $92 million in outstanding debt. 

GoPro stock traded over 2% lower overnight, after a 40% jump in the regular session. Shares are up a staggering 105% so far this week.

GoPro Eyes AI Infrastructure And Defense With Starman Merger 

GoPro shareholders will receive $285 million in cash, or $1.14 per share, while retaining about 10% ownership of the combined company. The combined company will remain Nasdaq-listed with the deal expected to close by the end of this year. 

In a letter to the employees, GoPro CEO Nick Woodman said that the agreement marks an important step in the company’s strategic review, which began in May. Woodman described the transaction as a positive outcome for the company, its workforce, customers and shareholders.

“Starman Optical has the resources to help us scale-expand our consumer product roadmap, grow our software and subscription business, and broaden the categories we compete to include commercial and defense markets.”

He added that Starman’s position in the AI infrastructure market could become a key part of the strategy. The company manufactures optical transceivers in the U.S., creating an opportunity for GoPro to add higher-margin revenue and use those proceeds to support expansion into new businesses.

Despite the planned transformation, Woodman said customers, partners and suppliers should not expect immediate changes. GoPro’s current products will remain in production, while subscription, cloud and support services will continue operating normally.

YouTuber’s Stake And GoPro’s Strategic Review 

GoPro stock also surged over 46% on Monday, after YouTuber Markiplier disclosed an 8.5% stake in GoPro, believing the company is undervalued. He supports making professional filmmaking more accessible to creators and has become more positive on GoPro cameras after using its Mission 1 Pro ILS.

In March, GoPro said its board began reviewing strategic options, including a possible sale or merger, to increase shareholder value. The move followed interest from potential buyers and the company’s push into defense and aerospace markets with help from defense consulting firm Oliver Wyman. 

What GPRO Retail Traders Are Saying 

On Stocktwits, retail sentiment for GPRO remained ‘extremely bullish.’ The stock recorded a 13,381% jump in message volume over the past week, with a 1.8% gain in watchers. 

A user said, “I think we’re going AI drones. Plus we already have the camera technology. We’re at war with Iran, and the United States is behind the times. One standard Patriot missile costs between $3.7 million and $5 million.”

Another user remarked, “so many questions. How will GoPro shareholders be compensated once the merger is approved? Will this be a dividend? What will the implied value of the new company be? Right now the shares are at $1.20 so the implied value of the new company is about $.60 since GoPro shareholders receive 10%. My other question is this a non competing offer?” 

GPRO stock has declined 12% year-to-date. 

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