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No One Interested In Go Pro Anymore

After months trying to flog the Company GoPro is no closer to finding a buyer due in part to the market for action cameras peaking and the abundance of competitors with cheaper options.

The struggling action-camera maker that is known for its arrogance, has failed to attract the serious interest of any bidders after hiring JPMorgan last year to explore a possible sale.

Shares in the US Company have fallen 23% in 2018. The stock fell almost 28% in January 2018 after the company announced an operating loss of $37.4M.

In Australia several distributors who benefit from the rapid rise in demand for GoPro cameras are now struggling to attract retailers and sales have slumped.

On February 1, 2018 GoPro reported revenue of $334.8 million with a gross margin of 24.8% but this was not enough to generate profits.

Nick Woodman who some say spends a lot of time on the beach, said during TV interviews in January that he was open to a sale and confirmed he’d hired JPMorgan, goosing the company’s shares despite its worsening financial outlook.

Nevertheless, “no one wants to touch GoPro,” a source with good knowledge of the sales process said.

A second source close to the sale said, “A lot of people have kicked the tires and Nick Woodman is a complicated guy,” adding that there is no deal close at hand.

Woodman strongly hinted about a possible sale in both January and February.

“My job as CEO is to … create as big an opportunity for our investors as possible and … if we can achieve that more easily and more quickly with a partner, we would jump at the chance to have that opportunity,” Woodman told Bloomberg on Feb. 13.

Woodman on Jan. 9 reported disappointing earnings and the company’s shares fell to $5.09. Later that day, Woodman revealed the company was working with JPMorgan, causing the shares to rally to $6.56.

In 2017, GoPro sold 4.3 million cameras, a 9.6 percent fall compared to the prior year.

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