GoPro announces layoffs and end of drone business

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"These factors make the aerial market untenable and GoPro will exit the market after selling its remaining Karma inventory", said the company. GoPro shares are also down by 75 percent from their $24-a-share price when the company went public in June 2014.

Earlier Monday, the company unveiled plans to cut more than 20 percent of its global workforce and exit the drone business after a disappointing fourth quarter.

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GoPro's shares recovered somewhat after the news of the possible sale, down 11.30% to $6.67 in mid-day trading on Monday.

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The Karma drone was meant to be GoPro's next big product when it launched amid much fanfare in 2016. So, for now, I think investors would do well to focus first on GoPro's underlying business rather than on the prospect of any potential acquisition premium.

GoPro's move into the drone market is coming to an end. 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.

Chief Executive Nick Woodman also said he would cut his cash compensation for 2018 to $1. "JP Morgan is our banker, but there is no active engagement to sell", GoPro said in emailed comments to Reuters.

"As we noted in our November earnings call, at the start of the holiday quarter we saw soft demand for our HERO5 Black camera", said GoPro founder and CEO Nicholas Woodman in a released statement. That shaved $80 million from expected fourth quarter revenue, which the company now estimates will total $340 million, falling short of the $472 million expected by analysts.