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GoPro shares rise as company agrees to merge with Starman Optical to diversify into AI infrastructure

GoPro shares rose 11% in late-morning trading on Thursday, following the announcement of a merger with the privately held company Starman Optical. Under the terms of the deal, which is valued at $285 million, GoPro shareholders will receive $1.14 in cash per share and retain a 10% stake in the combined company. Starman Optical will also repay approximately $92 million of GoPro's outstanding debt at closing, resulting in a debt-free balance sheet for the company. Nick Woodman, the founder and CEO of GoPro, issued a letter to the community addressing concerns that the merger might shift the company away from its core identity as an action camera maker. Woodman stated that GoPro will continue to develop market-leading cameras and gear, maintaining its core DNA while leveraging the new merger to improve financial strength. The company plans to expand its product roadmap to include Starman's US-made optical transceivers, providing exposure to the AI infrastructure market, data centers, and defense applications. The merger is expected to close by the end of 2026, subject to regulatory and stockholder approval.

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