GoPro says it is formally reviewing strategic options, including a potential sale or merger, marking a potentially major turning point for one of the most recognizable brands in modern imaging.

As reported by Reuters , the announcement follows a difficult stretch for the California-based action camera maker, which has faced declining revenue, widening losses, layoffs, and intensifying competition from rivals such as DJI and Insta360. Despite those challenges, news of the strategic review sent GoPro shares sharply higher in after-hours trading, as investors reacted to the possibility of a larger technology or imaging company stepping in.

According to the company, GoPro’s Board of Directors has authorized management to engage a financial advisor and evaluate a range of options intended to maximize shareholder value.…