I ran it through Gemeni and the floor is $1.32 FYI. I bought in at $1.29 and will hold until EOD.
Under the merger agreement with Starman Optical, the total price per share for GoPro (GPRO) shareholders consists of **$1.14 in cash** plus the market value of a **10% retained equity stake** in the combined company.
**Total Shareholder Payout Structure**
* **Guaranteed Cash Floor ($1.14/share):** GoPro shareholders receive an aggregate cash distribution of $285 million, which equals **$1.14 per share** in cash at closing (subject to customary working capital adjustments).
* **Retained Equity (10% Ownership):** Existing shareholders collectively keep roughly **10% of the combined company** (GoPro plus Starman Optical), which will remain publicly traded on the Nasdaq.
* **Debt Payoff:** Starman is repaying GoPro’s \~$92 million in debt at closing, leaving the combined business largely debt-free and strengthening the balance sheet behind the 10% equity stake.
**Implied Share Value**
Following the announcement, GPRO stock traded around **$1.32 per share**. This implies the market currently values the deal components as:
$$\\text{Total Share Price} = \\underbrace{\\$1.14}\_{\\text{Upfront Cash}} + \\underbrace{\\$0.18}\_{\\text{Market Value of 10\\% Retained Equity}} = \\$1.32$$
* **If the merged business succeeds:** (expanding into AI data center infrastructure and defense optics), the retained 10% equity stake could gain value above $0.18 per share.
* **If the merged business underperforms:** the value of the 10% equity stake could drop toward $0.00, leaving the cash component of $1.14 as the core value floor.