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GoPro’s Stock Rests on Potential Sale

GoPro’s stock has hurtled downhill this year, not unlike one of the thrill-seeking mountain bikers who put on its wearable cameras before taking the plunge. Shares are down 36% in 2018, cutting its market capitalization to roughly $700 million. GoPro investors now have to hope the company will get acquired to see any lift in the price.

In a sale, GoPro could conceivably fetch $1 billion, based on the price that Hewlett Packard paid for Palm—another struggling electronics maker—in 2010. A sale might happen. CEO Nick Woodman has said publicly that he is open to a deal. Chinese electronics maker Xiaomi has weighed whether to make an offer but doesn’t want to overpay, according to a person familiar with the matter. Chinese drone maker DJI was pitched by bankers on GoPro several months ago but didn’t pursue a deal because it saw no value in the company, said a person familiar with the matter. DJI declined to comment.

This much is clear: The company’s future comes down solely to Mr. Woodman, whose shares carry extra votes, giving him 76.5% of voting power. Any major decisions this year, including a sale offer, would have to go through him. GoPro has had a wild ride since its debut on the stock market in 2014. It’s a good bet more rollercoaster-like action is ahead.

—Juro Osawa contributed to this article.

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