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It is no secret and no news that Xiaomi is the 5th largest smartphone manufacturer of the world. It has obtained distinguished position not only as a smartphone manufacturer but also as the well-known and recognised manufacturer of laptops, fitness accessories, intelligent consumer products such as drones. Within a couple of years it has expanded to be the 10th biggest TV manufacturer, which  has not been an easy exercise on such a big market.

It is fresh news according to Bloomberg that Xiaomi has considered to purchase GoPro.

GoPro founded in 2002 by Nick Woodman is a well-known brand. Its big success came with the action-cameras, but in sales of drones it is well-preceded by its rival. The company has had financial problems for years. In 2016 it still employed 600 workers. In January, GoPro left the drone business because of a serious of construction failures and modest sales. Karma drone was not a bad idea but the several product recalls thank to manufacturing failures were the last nails in the coffin of the drone division. DJI is the world leader in this field and its  competitive advantage is gradually growing. After weak financial indicators, Woodman himself confirmed that he is willing to sell the company.

He said the following:

“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.. “

According to GoPro financial results in 2014, it was valued for more than 10 billion USD. However, its stock prices have considerably fallen by 38% in 2018 and its market cap has fallen to only about 700 million USD.

There is no more information about the details of the fusion that can be made between Xiaomi and GoPro. GoPro could potentially get 1 billion USD with this acquisition. Remember that Xiaomi Mi Drone is a good rival to DJI Phantom 3. Low in price but in terms of specifications it is better. It is also worth noting that years ago Xiaomi got Segway and it could successfully develop it. GoPro buyout is expected to have positive effects on the future of the manufacturer and in this way Xiaomi can also get a new market for its drones and can become a stronger rival of DJI.

 

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