GoPro Announces New Partnership With Red Bull, Stock Surges

An expected synergy arises in the world of action sports. GoPro photo. 

In a press release yesterday GoPro announced an official partnership with Red Bull. The agreement is a multi-year deal that includes content production, distribution, cross promotion and product innovation. Red Bull will receive equity in GoPro and in return the camera company will be the exclusive POV imaging partner for all of Red Bull's Media production and events. 

GoPro CEO Nick Woodman told CNBC that Red Bull's stake in the company was under 1 percent.

RELATED: GoPro Lays Off 7% of Workforce After Disappointing Q4

"Red Bull's global scale and execution is something to be admired. This partnership is very strategic for GoPro," said Nicholas Woodman, founder and CEO of GoPro. "We share the same vision…to inspire the world to live a bigger life. While we've worked closely for many years, as official partners we'll be able to more effectively help one another execute our shared vision and scale our respective businesses. GoPro and Red Bull, as a match, are as good as it gets."

GoPro was briefly the darling of Wall Street after its initial public offering in 2014, with stock prices jumping to over 100% of the initial asking price of $24 per share. Quickly, however, the stock faced trouble with lackluster sales, lack of innovation, and growing quality from cheaper competitors. 

After the failure of the Hero 4 Session, GoPro has recently put their eggs in both the consumer drone and virtual reality market. They will face stiff competition in both markets, as Chinese company DJI has product offerings for both the consumer and professional videographer. 

The camera company's stock surged 7% after the announcement of the Red Bull partnership, leading some to theorize that this could be the floor of GoPro's stock price. Others are not sure as the company reported revenues less than 50% of projections for last quarter. The stock currently sits at $10.06, about 90% down from its highest valuation.

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stash member Jonathan Desabris

Digital Content Producer at TGR. Jackson Hole transplant from the Green Mountain State. Contrary to popular belief I have never lived in New Jersey.