GoPro Is Reportedly Looking to Sell Itself Amid Continued Stumbles
GoPro is exploring a sale after a tumultuous couple of years that included multiple rounds of layoffs, shrinking sales, and a plummeting stock price.
The action camera company has hired J.P. Morgan Chase to help it find a suitor, according to a CNBC report on Monday that cites unnamed sources. It’s unclear if there are any interested buyers and a deal may not occur, the report said.
The news follows GoPro CEO Nick Woodman’s comments to CNBC on Monday in which he said the company would be open to selling itself to a larger company, but otherwise plans to operate as a standalone business.
“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,” Woodman told CNBC.
GoPro (GPRO) had a rough Monday with its stock tumbling as much as 33% to $5.04 after the company confirmed that it would lay off 20% of its workforce, or about 250 people. GoPro also said that would kill its Karma drone business amid poor sales and a glitch that caused the device to shut down in mid-flight and led to a recall after it debuted in late 2016.
GoPro’s shares recovered somewhat after the news of the possible sale, down 11.30% to $6.67 in mid-day trading on Monday.
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The company also said that Woodman’s compensation would drop to $1 during 2018 as it attempts to become profitable in the second half of the year.
Fortune contacted GoPro and will update this story if it responds.
Update Monday at 11:55 AM PST:
Woodman responds to the possibility of a sale, via Bloomberg News.
“I can confirm that J.P. Morgan is in fact our banker but we have not engaged them to help us sell the company,” Woodman said. “With that said, if there were an opportunity for GoPro to partner up with a larger organization that could help us scale the company, scale our brand and our reach to consumers, then that’s certainly something that we would consider.”
A GoPro spokesperson told Fortune in an email:
We’ve always been clear that we are open to any opportunity that will help us scale our mission. JP Morgan is our banker, but there is no active engagement to sell. It is our responsibility to scale the business, so if the right opportunity presented itself, it’s something we would consider.