We didn’t actually predict this move two years ago, but we definitely saw the potential there. In 2016, we were saying that Xiaomi’s Yi 4K camera was basically an improved GoPro with a better price tag. Now, word is the company is trying to acquire their “rival” for $1 billion.
According to The Information, GoPro is open to a sale proposal and Xiaomi is one of the companies to consider it. The Chinese consumer electronics maker could buy the action camera company for $1 billion at most, since it’s wary of overpaying. It appears DJI was another prospective buyer but didn’t make an offer in the end, failing to find “value in the company.”
To be fair, GoPro has spend the last decade improving on a single camera model. The one time it did try to extend the product range, its initiative was met with caution and eventually led to a recall. Later on, the company was forced to make a 15% workforce cut.
So, Xiaomi’s reluctance makes sense. That said, the Chinese manufacturer would have a lot to gain, starting with access to the US market. GoPro is a brand in the action camera community and it has a market presence in at least 100 countries. Meanwhile, Xiaomi is mostly known for its phones, although it sells laptops, robots, TVs and even electric scooters!
This partnership could do wonders for both companies. GoPro Inc. jumped 8.8 percent, since the news spread. The only obstacle Xiaomi and GoPro could face now would be a resistance or ban from US authorities. It happened with Broadcom, remember?