Market Overview

GoPro CEO: 'The World Of Red Bull Is Going To Be Brought To You By GoPro'

Share:
GoPro CEO: 'The World Of Red Bull Is Going To Be Brought To You By GoPro'

Shares of GoPro Inc (NASDAQ: GPRO) were trading higher by more than 5 percent on Tuesday after the company announced a new global partnership with Red Bull, which includes content production, distribution, cross-promotion and product innovation.

Speaking to CNBC's Kayla Tausche, GoPro's CEO Nick Woodman said his company and Red Bull have been collaborated for several years, but now is a good time to make their relationship "official."

"Once we are official partners, there is so much more we can do and take everything we have learnt over the past few years and do it on a much larger scale," he said.

Related Link: Drone Market Could Reach $127 Billion By 2020, PWC Believes

As part of the agreement, Red Bull would receive an equity stake in GoPro. Woodman confirmed during his CNBC appearance that the stake amounts to less than 1 percent. He did however add that the equity stake Red Bull receives is "material," as it better aligns the two companies as partners.

Woodman added that the deal also serves as "validation" of Red Bull's confidence in the business model.

"The world of Red Bull is going to be brought to you by GoPro in a whole new way and it should be terrific promotion for GoPro," he noted.

Finally, the executive confirmed that its Karma drone "will be ready in time for the holidays."

 

Related Articles (GPRO)

View Comments and Join the Discussion!

Posted-In: CNBC GoPro Karma GoPro Red BullNews Movers Tech Media Trading Ideas Best of Benzinga