TLDR
- GoPro stock has surged nearly 200% this week after YouTube creator Markiplier revealed an 8.5% stake, making him the company’s largest shareholder.
- GoPro agreed to a $285 million cash merger with Starman Optical, a US photonics company that makes optical transceivers for AI data centers.
- Starman will pay $1.14 per share in cash; GoPro stock was trading around $1.75, above the offer price.
- The deal is expected to repay GoPro’s roughly $92 million in outstanding debt and keep the company publicly listed.
- GoPro had warned in June there was “substantial doubt” about its ability to continue as a going concern.
GoPro (GPRO) stock was trading around $1.75 this week, up nearly 200% over the past few sessions, driven by two separate catalysts hitting in quick succession.
The week started with news that YouTube creator Mark Fischbach, known as Markiplier, had acquired an 8.5% stake in GoPro through a Schedule 13G filing dated August 20. That made him the company’s single largest shareholder.
Fischbach told Bloomberg he believed the stock was undervalued and that he wanted the company to succeed. He has framed the investment as part of a wider push to make filmmaking more accessible.
The move drew immediate attention from retail traders. GoPro has historically been a heavily shorted stock, and Markiplier’s disclosure sparked fresh interest from meme-stock traders.
Then on September 1, GoPro announced a definitive merger agreement with Starman Optical, sending the stock up another 40% that day alone.
The Starman Deal
Under the deal, Starman will pay GoPro shareholders $285 million in cash, or $1.14 per share. Starman would receive a 90% stake in the combined company, with existing GoPro shareholders holding the remaining 10%.
The transaction is expected to close by the end of the year. GoPro is set to remain publicly listed, and the deal would repay the company’s roughly $92 million in outstanding debt.
Starman makes optical transceivers in the US, primarily for AI data centers. The merger is designed to give GoPro a foothold in commercial, defense, and AI markets, while putting its more than 2,500 US patents to broader use.
GoPro CEO Nicholas Woodman said the company aims to become an American imaging and optical solutions company through the deal.
The two companies also said they intend to bring production of some optical equipment back to the US, though no timeline was given.
A Long Road Down
The rally is striking given where GoPro has come from. The stock debuted in 2014 at $38 per share and hit a $4 billion valuation on its first trading day.
Since then, it has lost around 96% of its value. Competition from Chinese rivals like DJI and Insta360 eroded GoPro’s market position, and revenue in the most recent quarter was down more than 80% from the $633.91 million recorded in Q4 2014.
Higher memory chip prices tied to AI infrastructure expansion added further pressure in recent months.
In June, GoPro warned there was substantial doubt about its ability to continue as a going concern over the next 12 months.
The Starman merger announcement followed GoPro’s disclosure in May that its board was exploring strategic alternatives.
GoPro said it will continue supporting its consumer products, subscriptions, and cloud platform while pursuing the expanded roadmap the Starman deal would enable. The company does not plan to exit the action-camera market.
The proposed merger remains subject to closing conditions.
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