GoPro Inc CEO Plans To Return $299 Million To Ex-Roommate
The CEO of the action camera making is giving back shares valued up to $29 million to the company for a promise he made ten years back.
As per the most recent GoPro news, the fact that CEO Nick Woodman made a promise to his roommate ten years back which is now valued up to $299 million has come as a surprise to analysts and investors alike. According to the news that has been circulating, Woodman made a promise to Neil Dana, with whom he lived in the same room while he was studying in the University of California. Bloomberg reports that the promise that was made a decade ago is now going to be turned into reality by the action camera making firm’s CEO for which he will have to sell back 4.7 million shares of the company back to GoPro, a transaction that will be valued at $299 million.
Nick Woodman has resulted in being a man who keeps his word as after a massive gap of ten years, the promise he made to his roommate is being worked upon. According to the promise, Woodman was supposed to give around 10% of the money that he receives by selling off GoPro (GPRO) Inc shares. This promise, however, was made
On the other hand, Neil Dana received around six million options from GoPro as well as ownership of 270,000 restricted stock four years back. Keeping the promise made to him back in the college days, Woodman said that he will pay the company this amount once this offer is availed by Dana. Therefore, when last week Dana used $3.6 million from the previous offers made to him, Woodman will be giving back shares to the action camera makers worth $299 million. This step is going to cause one disadvantage to Woodman, and that would be when his worth in the industry will see a decline, coming around to be $2.3 billion.
Only last year, when the shares of GoPro were made available for the public, Nick Woodman resulted in becoming a billionaire along with his family members. According to the news from the previous year, Woodman was recorded to be the highest paid CEO so far in the United States.
GoPro sales have so far not been affected by the increasing competition that has been started to emerge in the action camera industry and the firm is still seen to be the most dominant company to be manufacturing action cameras. However, the firm is now looking for ways to make its business more diversified so that it becomes capable of handling pressure in a better way.
