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Xiaomi: 'Camera, Action'

Apr. 13, 2018 10:47 AM ETGoPro, Inc. (GPRO), XIACF29 Comments
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B&B Market


  • Xiaomi has been a pain in GoPro's side, but now rumors of a potential GoPro buyout have recently begun circulating.
  • Known as the low-cost producer, Xiaomi produces quality cameras that retail for half the price of GoPro's.
  • An IPO is due in the second half of 2018, and these aggressive moves show that Xiaomi is not holding back.
  • GoPro CEO Nick Woodman has stated that he is open to a buyout and this may be the last chance.

On April 12, rumors began circulating that Xiaomi (XI) was interested in acquiring action-camera producer GoPro (NASDAQ:GPRO). Considering that Xiaomi already has an action-camera brand that is cheaper, and in some aspects, better than GoPro, is it realistic that an acquisition is on the horizon? Especially with an IPO in the near future, Xiaomi cannot be careless with its cash.

GoPro News

Shares of GoPro popped on the news of Xiaomi's interest, but overall the company is a far cry from its early days. On Wednesday, shares closed at $5.22, up 7.19% from Tuesday's close, but down 30% YTD.


GPRO data by YCharts

At this close, GoPro is valued at $763 million. Reports have compared this deal to a deal made by Hewlett Packard (HPE) to buy a company called Palm. Based on this deal, GoPro may be valued as much as $1 billion, but this is unlikely. While Xiaomi has confirmed the interest, they have not mentioned anything close to a deal. The main reason being that the company wants to be sure not to overpay for the camera company.


Given that Xiaomi has its own line of wearable cameras, why is there interest in GoPro? Shown in the table below, Xiaomi's Yi action camera beats the HERO is most categories... and is half the cost ($64).

Source: TechJuice

Xiaomi has become a major competitor for GoPro since its release in 2015. While the Yi was not initially rolled out in the US, where about 50% of GoPro's market is, it caused a roadblock in GoPro's international expansion.

There is a clear cosmetic difference between the two cameras as well. This is due to a cultural difference. If purchased, the GoPro cameras' design may help Xiaomi expand into some markets where a more 'professional' look is desired.


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