GoPro Surges 78% as Markiplier Stake and $285M Starman Optical Merger Drive Two-Day Rally

GoPro shares surged as much as 78% over two trading sessions, driven first by the disclosure that YouTube megastar Markiplier had acquired an 8.5% stake in the struggling action-camera maker worth roughly $9 million, making him the company's largest individual shareholder, and then by the announcement of a definitive merger agreement with private optical-photonics firm Starman Optical in a $285 million recapitalization deal.

Under the terms of the merger, GoPro shareholders will receive approximately $1.14 per share in cash and retain roughly 10% of the combined company, while Starman acquires a 90% stake. About $92 million of GoPro's existing debt will be repaid at closing. The combined entity will remain publicly listed on Nasdaq and plans to pivot well beyond consumer cameras into AI data-center infrastructure, government, defense, and aerospace markets, using Starman's U.S.-made optical transceivers.

Options market activity flagged unusual positioning ahead of the announcements, with GPRO seeing 50 times normal options volume on Monday and 53 times normal volume on Tuesday. Notable flow included the $1 strike September 18 calls. Morgan Stanley analyst Erik Woodring, however, signaled continued downside for the stock over the next 12 months despite the two-day rally.