So far, it has not been a good year for GoPro. The company’s stock price is way down, as are its revenue estimates for 2016.
Looking to Shake Things Up, GoPro Drops $105 Million on a Pair of Video Editing Apps
The deal is a pricey one for GoPro.
Vjeran Pavic
In an effort to shake things up a bit, GoPro today announced that it is spending a total of $105 million in cash and equity to buy two mobile video editing apps, Replay and Splice.
Replay is a French-developed app that lets users stitch photos, videos and music into a single video from a smartphone. Splice is a more specialized mobile video editing app that tries to enable on your phone some features for which you’d traditionally need a desktop computer. According to a press release, both companies “will maintain operations in their current locations, Paris and Austin.”
Last month, GoPro issued a preliminary release saying that its Q4 earnings were way below analyst estimates, and that the company would be shedding 7 percent of its global workforce. CEO Nick Woodman said that bungling last year’s launch of the Hero 4 Session camera, a screw-up on his part, was largely the source of the company’s woes.
Since peaking at around $65 a share at the end of last summer, GoPro stock has fallen by more than 80 percent, way below its IPO price. For some time now, industry experts and pundits have been wondering out loud about whether GoPro will just get taken over.
In an email, GoPro spokesperson Lara Sasken said that details on “integration plans, [a] rebranded app/experience and content” would be coming soon.
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Correction: A previous version of this post misstated how much of GoPro’s cash the deal used.
This article originally appeared on Recode.net.
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