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GoPro Cuts Hundreds of Jobs, Stock Falls 25 Percent

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GoPro plans to cut 300 jobs as Karma drone division struggles

In addition to its earning news, GoPro CEO Nick Woodman told CNBC the company would consider a sale or partnership with another company.

GoPro has today revealed plans to exit the drone market and make major restructuring changes to its business after a fourth quarter with weak sales and high operating expenses in 2017.

"Although Karma reached the No. 2 market positions in its price band in 2017, the product faces margin challenges in an extremely competitive aerial market", GoPro said a statement published by the website PetaPixel.

"If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at", Woodman said.

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"Of course we need to run the business as though we're going to be independent, and we're planning accordingly". In the months that GoPro was dealing with the, uh, fallout from the Karma's problems, DJI released two new smaller and cheaper drones that essentially made the Karma obsolete.

GoPro's stock saw a spike in downside bets amid the negative news, with traders initiating almost 1.5 million of new short sales.

They raked in roughly $45 million in mark-to-market profit as the company's stock plunged as much as 33%, according to data compiled by financial analytics firm S3 Partners. Fourth quarter revenue includes a negative impact of approximately United States dollars 80 million for price protection on HERO6 Black, HERO5 Black and HERO5 Session cameras, as well as the Karma drone. It also doesn't have the cash to make an acquisition and probably won't anytime soon. It's still early, but you can bet we'll start seeing analysts weigh in on companies that might buy GoPro by issuing their own lists of suggestions. Dusaniwsky said that since then, short interest in GoPro is down by more than one-third at $234 million. The selling did subside somewhat later in the session, however, on a CNBC report that the company had hired JPMorgan to oversee a potential sale.

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