GoPro stock jumps 200% after Markiplier stake, Starman deal

GoPro shares rose roughly 200% over the week after two developments: YouTuber Mark Fischbach disclosed an 8.5% stake and GoPro announced a $285 million cash merger with Starman Optical.

Fischbach filed a Schedule 13G on Aug. 20 showing the 8.5% holding, making him the largest single shareholder. He has said he viewed GoPro shares as undervalued and described the investment as part of efforts to make filmmaking more accessible. The filing attracted retail traders and prompted renewed interest from short sellers and meme-stock speculators.

Under the merger agreement, Starman will pay $285 million in cash, or $1.14 per GoPro share. Starman would own 90% of the combined company and existing GoPro shareholders would retain 10%. The transaction is expected to repay about $92 million of GoPro’s outstanding debt and keep the company listed on Nasdaq, with a target close by the end of the year. After the merger announcement, shares traded near $1.75, above Starman’s $1.14 offer.

Starman manufactures optical transceivers for AI data centers in the United States. The company said the deal would give GoPro exposure to commercial, defense and AI markets and allow fuller use of GoPro’s more than 2,500 U.S. patents related to optics and imaging. The two companies said they would pursue bringing production of certain optical equipment back to the U.S. and that Starman plans to add optical transceivers to GoPro’s product lineup.

GoPro chief executive Nicholas Woodman described the merger as enabling expansion across consumer, commercial and defense markets while positioning the company as an American imaging and optical solutions provider. The company said it will continue supporting its consumer products, subscription services and cloud platform and does not plan to abandon its action-camera business.

GoPro debuted in 2014 at $38 a share and reached a roughly $4 billion valuation on its first trading day. Since then the stock has lost about 96% of its value. Revenue has fallen from its peak; June-quarter revenue was down more than 80% compared with the $633.91 million recorded in GoPro’s final quarter of 2014. In June the company warned there was substantial doubt about its ability to continue as a going concern over the next 12 months, citing financial pressure including higher memory-chip costs linked to AI infrastructure expansion.

The proposed transaction remains subject to customary closing conditions. If completed, it would pair GoPro’s imaging patents and consumer brand with Starman’s optical components business and connections to AI and defense customers.