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 9% stake 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. GoPro is privately held and makes waterproof and durable cameras that many extreme sports enthusiasts use and recently has been rumored to be preparing 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 growing technology sector. In March, Foxconn 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 GoPro products, according to the camera company’s spokesperson, but that could and most likely would change. Terry Gou, the CEO of Foxconn called the investment made by the company in GoPro a great opportunity. He will 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.