Apple supplier Foxconn buys stake in camera maker GoPro
The iPhone and iPad supplier has spent $200 million for a small share of GoPro, and Foxconn's CEO will join GoPro's board.
Foxconn is branching out from its supplier roots by taking a staking in a camera maker.
The company, also known as Hon Hai Precision, said today that it has paid $200 million to acquire an 8.88 percent stake in GoPro, in turn valuing the camera maker at $2.25 billion overall.
In addition, Foxconn founder and CEO Terry Gou will join GoPro's board of directors.
Headquartered in San Mateo, Calif., GoPro makes a line of wearable and gear-mounted cameras that enable users to shoot videos of themselves in action. The cameras are used by athletes, video production people, and other professionals. The company's products are sold online and in more than 30,000 stores throughout 100 countries.
Foxconn didn't reveal the specific reasons behind the deal but its CEO clearly views GoPro as a potentially lucrative investment.
"I saw a great opportunity in investing in GoPro, not only the company's product lines but also the man who is running the company," Gou said in a statement. "The first time I saw [GoPro Founder and CEO] Nick Woodman, I immediately knew he was an outstanding entrepreneur who has the caliber to be very successful in this business. And together with Foxconn, the outlook of this company is even brighter as we commit to helping it achieve its fullest potential."