Post by guest planet5D writer Kevin McCarthy.
2018 has not started off well for GoPro.
After two years of trying to gain a toehold in the ultra competitive drone market, GoPro has exited the competition by discontinuing their Karma drone. With that, they are rumored to have let go of nearly 300 employees.
If that mews weren’t bad enough, their stock has taken a nosedive this week as news of a possible sale weakens investor confidence.
While GoPro is not the camera of choice outside of the action sports crowd, it has become a very reliable choice for those who want to film action without endangering the life of their favorite camera. GoPro has spawned an entire action camera market, which, oddly enough, may be the cause of the company’s recent dilemma.
It is too early to tell if GoPro will survive this turn of events. Many, many people are watching though.
What do you think? Will they make it?
GoPro’s drone efforts have failed
Update (1:55 pm ET): Reports suggest that GoPro is seeking to be sold.
GoPro hoped its Karma drone would drive growth. Instead, the action camera maker confirmed it’s ending Karma production and will cut nearly 300 jobs, or more than 20% of its global workforce.
The company may also be putting itself up for sale: According to CNBC, the company has hired JP Morgan Chase to seek a potential sale. “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,” GoPro CEO Nick Woodman told CNBC earlier Monday.
Karma had a disastrous launch in 2016. Only a few weeks after its release, GoPro issued a mass recall of 2,500 units because faulty engineering caused the drones to lose power mid-flight and drop out of the sky.
Read full article at Quartz “GoPro’s drone efforts have failed”
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(cover photo credit: snap from Quartz)