GoPro (NASDAQ: GPRO) has announced agreements to acquire mobile video editing companies Stupeflix and Vemory in order to improve and simplify its own editing software. Stupeflix's app Replay allows users to quickly select video clips and photos and automatically combines them into a single video complete with transitions, graphics and music. Vemory's app Splice helps create customized edits on mobile platforms using the types of features normally found on desktop editing applications. Stupeflix is backed by 500 Startups and Seedcamp, among others.
The acquisitions are an attempt by GoPro to improve its mobile editing business—an area that has lagged behind its hardware capabilities for some time—in hopes of stopping the company's stock freefall. After reaching a high of nearly $94 just three months after its June 2014 IPO, slow sales of the company's recent cameras and an undiversified product portfolio have driven GoPro stock below $12. Hope is in the air for the company, however: It recently announced its consumer drone will be released this year, and many expect the next version of the company's action camera to rev up sales with industry-best video capture capabilities, along with enhanced battery life and a smaller, lighter frame.