GoPro Surges on Report That Xiaomi Has Considered an Offer

(Bloomberg) -- GoPro Inc. jumped as much as 8.8 percent after a report said Chinese electronics maker Xiaomi Corp. has weighed whether to make an offer for the action-camera maker.

Chief Executive Officer Nick Woodman has said he is open to a deal and earlier this year the company hired investment bank JPMorgan Chase & Co. to advise it on a potential sale. Once d at more than $10 billion, GoPro’s market capitalization has fallen to about $761 million. A buyer could leverage GoPro’s brand and gain profit contributions from device sales, analysts have said.

GoPro could potentially fetch $1 billion, The Information said, based on the price that Hewlett Packard paid for Palm, also a struggling electronics maker, in 2010. While Xiaomi has considered an offer, it doesn’t want to overpay, The Information said, citing a person familiar with the matter.

GoPro rose to as high as $5.30, the biggest jump since Feb. 14, and was trading at $5.16 at 1:24 p.m. in New York.

©2018 Bloomberg L.P.