Manufacturing giant Foxconn from Taiwan, which is best known for all the contract manufacturing they perform for Apple products has announced it will purchase a stake worth 9%in GoPro, a camera maker that had been an industry buzz.
The investment in GoPro by Foxconn will total $200 million, which makes the estimated value of the business $2.25 billion. The camera company is privately held and makes durable, waterproof cameras for many people who participate in extreme sports use and recently has been rumored to be gearing up for a spring IPO.
Foxconn is a contract manufacturer for close to 40% of all the electronic gadgets that consumers purchase including smartphones, tablets and other handheld devices. However, less known to many is that the company has a technology sector that is expanding. In March, the company also became the largest single investor in Sharp, the Japanese based tech giant. Foxconn’s investment in Sharp is $800 million.
At present, Foxconn is not manufacturing any products designed by GoPro, said the camera company’s spokesperson however that could and most likely would change. The Foxconn CEO Terry Gou called the investment made by the company in GoPro an excellent opportunity. Part of the deal is for Gou to sit on the GoPro board of directors.
Earlier this year, Foxconn received criticism for the long hours and hard working conditions its employees are subject to. However, the company has worked nearly the entire year with a fair trade association in order to improve its overall organization and its many working facilities.
A spokesperson for Foxconn said it required image capture technology to complement its already existing technology for display.
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.