Foxconn buys $200 million stake in GoPro at DVinfo.net

Ian Newland · December 20th, 2012, 02:36 PM

Foxconn buys $200 million stake in GoPro - Dec. 20, 2012

Foxconn, the Taiwanese manufacturing giant famous for its production of Apple products, announced Thursday that it has bought a 9% stake in much-buzzed-about camera maker GoPro.
The $200 million investment values the privately held GoPro at about $2.25 billion. GoPro, which makes waterproof and durable cameras used by extreme sports enthusiasts, has long rumored to be preparing for an initial public stock offering in the spring.

Foxconn is known primarily as the contracted manufacturer for an estimated 40% of the world's consumer electronics gadgets, but it also has a growing technology business of its own. In March, Foxconn became Sharp's largest shareholder with an $800 million investment in the Japanese tech giant.

Foxconn does not currently make any GoPro products, according to the camera company. But that could change. Terry Gou, Foxconn's CEO, called investing in GoPro "a great opportunity." He will join GoPro's board.

Foxconn has been criticized for subjecting its workers to extremely long hours and tough working conditions. It has been working with the Fair Labor Association this year to improve its facilities and organization.

"We are over the moon to have Terry Gou and Foxconn join us on our mission to scale GoPro into one of the great enabling companies of our time," GoPro CEO Nicholas Woodman said in a prepared statement.

Stephen Brenner · December 20th, 2012, 03:28 PM

Before this news, I was thinking that Gopro would be a likely candidate for competing with Blackmagic Design for the low cost raw cinema camera market. I'm not sure how this investment by Foxconn would change things. If anything, the manufacturing costs might drop significantly.

Ray Bell · December 26th, 2012, 09:06 AM

This is exactly how the Asian factories work... they get to know you and your products, then they will improve on them and bring their own products out, cut your production and put you out of business...

seen it many many times... its not a bad business model.. just a cut throat approach...

Sabyasachi Patra · March 12th, 2013, 08:21 AM

Superb news. Somehow I had missed it earlier.

I am sure with this private placement, Go Pro is now ready to scale new heights. It makes strategic sense. Lets see what magic Go Pro brings in NAB. May be another series competing with BMC, nicknamed spiderman, superman or something to go with the Hero brand?

December 20th, 2012, 02:36 PM	#1
Ian Newland Major Player Join Date: Jan 2009 Location: Brisbane, Australia Posts: 319	Foxconn buys $200 million stake in GoPro Foxconn buys $200 million stake in GoPro - Dec. 20, 2012 Foxconn, the Taiwanese manufacturing giant famous for its production of Apple products, announced Thursday that it has bought a 9% stake in much-buzzed-about camera maker GoPro. The $200 million investment values the privately held GoPro at about $2.25 billion. GoPro, which makes waterproof and durable cameras used by extreme sports enthusiasts, has long rumored to be preparing for an initial public stock offering in the spring. Foxconn is known primarily as the contracted manufacturer for an estimated 40% of the world's consumer electronics gadgets, but it also has a growing technology business of its own. In March, Foxconn became Sharp's largest shareholder with an $800 million investment in the Japanese tech giant. Foxconn does not currently make any GoPro products, according to the camera company. But that could change. Terry Gou, Foxconn's CEO, called investing in GoPro "a great opportunity." He will join GoPro's board. Foxconn has been criticized for subjecting its workers to extremely long hours and tough working conditions. It has been working with the Fair Labor Association this year to improve its facilities and organization. "We are over the moon to have Terry Gou and Foxconn join us on our mission to scale GoPro into one of the great enabling companies of our time," GoPro CEO Nicholas Woodman said in a prepared statement.

December 20th, 2012, 03:28 PM	#2
Stephen Brenner Regular Crew Join Date: Dec 2011 Location: Brownsville, OR Posts: 116	Re: Foxconn buys $200 million stake in GoPro Before this news, I was thinking that Gopro would be a likely candidate for competing with Blackmagic Design for the low cost raw cinema camera market. I'm not sure how this investment by Foxconn would change things. If anything, the manufacturing costs might drop significantly.

December 26th, 2012, 09:06 AM	#3
Ray Bell Regular Crew Join Date: Nov 2004 Posts: 1,414	Re: Foxconn buys $200 million stake in GoPro This is exactly how the Asian factories work... they get to know you and your products, then they will improve on them and bring their own products out, cut your production and put you out of business... seen it many many times... its not a bad business model.. just a cut throat approach...

March 12th, 2013, 08:21 AM	#4
Sabyasachi Patra Major Player Join Date: Apr 2010 Location: New Delhi, India Posts: 507	Re: Foxconn buys $200 million stake in GoPro Superb news. Somehow I had missed it earlier. I am sure with this private placement, Go Pro is now ready to scale new heights. It makes strategic sense. Lets see what magic Go Pro brings in NAB. May be another series competing with BMC, nicknamed spiderman, superman or something to go with the Hero brand? __________________ Wild Tiger Productions http://www.indiawilds.com/about.htm