GoPro Inc (NASDAQ:GPRO) shares are surging as rumors of a potential takeover were swirling today.
The personal camera manufacturer is reportedly in talks with several private equity investors who are joining forces to buy the company. However, the rumors could be nothing more than rumors as there is not enough factual information to back up these claims.
Perhaps if a source close to the matter came forward and confirmed these talks, the move could carry more weight with it. Nevertheless, the rumors were enough to drive GPRO shares up 1.7%, which are now selling at $9.06 per share.
GoPro could have more capital to advance its technology and fund more cameras and accessories for its products moving forward if such a deal comes through. Shares were in the red earlier in the day, but the stock started moving upwards once the rumors started making the rounds.
The stock has underperformed all year, declining 49.9% year-to-date with GPRO shares now selling at $9.06. GoPro announced less than a month ago that it is cutting 15% of its workforce to help reduce costs.
Bulls are still hoping for a turnaround period that would make the stock profitable for investors once again, but there is little chance of this happening over the coming weeks. A takeover orchestrated by private equity firms could be the push the company needs to turn the ship around sometime within the next year.
