- Shubham Sharma
Amazon Ends iRobot Deal, Roomba Layoffs 2024
Amazon cancels the planned iRobot acquisition due to regulatory issues from the European Union.
iRobot, maker of Roomba, to lay off 31% of employees (around 350 people) after deal termination.
iRobot's CEO, Colin Angle, steps down immediately.
iRobot shares drop 10% in morning trading following the news.
The data collected by Roomba had also raised questions.
The Wall Street Journal reports uncertainty as the EU denies approval for the deal.
EU Commission expresses concerns about Amazon hindering iRobot rivals on its online marketplace.
Amazon is disappointed and cites a lack of regulatory approval in a release.
iRobot shifts focus: margin improvements, reduced R&D spending, and pause on non-floorcare products.
Amazon pays iRobot a $94 million breakup fee despite the terminated $1.7 billion deal.
iRobot's market cap dropped below $400 million after the EU blocked the acquisition.
In July, iRobot secures a $200 million financing facility from Carlyle Group.
Amazon is silent beyond the released statement.
Global regulators scrutinize tech giants; Amazon is under FTC-
investigation for ties with AI developers like Anthropic and OpenAI.