GoPro hires bankers to consider sale after new revenue miss

GoPro hires bankers to consider sale after new revenue miss

GoPro is planning to re-structure through an $80 million cost-cutting program, which will see least 255 employees lose their jobs to achieve a headcount of "fewer than 1,000 employees worldwide". GoPro shares are also down by 75 percent from their $24-a-share price when the company went public in June 2014. Now, the company says that it will focus on innovations in the core product lines.

The struggling GoPro Karma drone is also being put out of its misery, leaving the Chinese juggernaut DJI with one less major competitor in the market it dominates.

"GoPro is committed to turning our business around in 2018", Woodman said alongside the news about the end of Karma. And now the company is preparing itself for the inevitable as GoPro is thinking about selling itself to someone else, but it wants to stay independent. Bank of America upped their price objective on shares of GoPro from $8.00 to $9.00 and gave the company an "underperform" rating in a research note on Tuesday, October 31st.

CEO Nicholas Woodman told CNBC: "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". GoPro said it expects sales for the quarter ending December 31 to be $340 million, a 37 percent decline from the same period a year ago.

Various news sources started reporting that the sports camera manufacturer had hired JP Morgan to assist with a sale process.

GoPro is cutting staff and expects a sharp decline in fourth-quarter revenue after facing weak demand for cameras during the holiday season. Wall Street analysts had earlier forecast GoPro to report sales of $472 million for the quarter.

Price protection is the money that GoPro has to refund to retailers who purchase cameras at a higher price, whenever the company lowers the suggested retail price, as it did for the Hero5 camera, launched in 2016. Apple would certainly have the cash to buy GoPro this year, especially if it repatriates a massive chunk of the cash hoard it has overseas, as most analysts generally expect it to do.

GoPro shares fell by a quarter to their lowest on record yesterday after the sports camera maker said it would cut a fifth of its workforce and quit the drone market.

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