GoPro, the action camera company known for its rugged devices, is exploring opportunities in the defense and aerospace sectors as it grapples with declining sales and financial losses. The company has hired investment bank Houlihan Lokey to evaluate strategic alternatives, including a potential sale, after receiving multiple unsolicited inquiries from various sectors.
Market Shifts and Investor Interest
In recent years, investments in defense startups have surged, with companies like Anduril raising significant funds. GoPro's pivot follows trends seen with other companies, such as Ford's energy-storage business and Redwood Materials' data center energy storage initiatives, which have captured investor interest.
GoPro's Financial Challenges
GoPro's financial situation has been challenging, with sales declining and losses increasing. The company's stock price has stagnated at around $1 for the past two years. In response, GoPro announced plans to explore new markets, a move that temporarily doubled its stock price. However, the gains were short-lived, and the stock has since fallen back.
Strategic Alternatives and Workforce Reductions
On Thursday, GoPro confirmed it is working with Houlihan Lokey to explore potential strategic alternatives, including a sale. This is not the first time GoPro has considered such a move; a sale was briefly on the table in 2018. The company is also reducing its workforce by 25%, further highlighting its current challenges.
Defense Market as a New Frontier
GoPro's decision to pivot to defense and aerospace comes as the Pentagon's budget continues to expand, making the sector an attractive option for companies seeking growth. However, the success of this pivot remains uncertain as GoPro navigates its financial difficulties.
Source: https://techcrunch.com/2026/05/15/even-gopro-is-pivoting-to-defense/
