iRobot deal with Amazon ends, vacuum maker to cut 31% of staff.

Amazon’s proposed deal to acquire iRobot failed to gain regulatory approval, leading to an agreement to terminate the acquisition. This stands as yet another example of regulators around the world scrutinizing large technology companies for potential anti-competitive effects and calling off such deals on those grounds. The acquisition termination affects both companies, with iRobot announcing layoffs and operational reshuffling while Amazon will pay iRobot a $94 million breakup fee, while iRobot’s market capitalization is now under $400 million
Furthermore, the European Union had also moved to block the deal, adding to the uncertainty about the fate of the acquisition. iRobot’s shares dropped 15% as a result. Amazon expressed disappointment over the deal’s failure and iRobot announced a range of cost-cutting measures, including layoffs of 31% of its employees and planned product development pauses. With the deal off, iRobot now shifts its focus to margin improvements and continues to develop new products in the robot and home innovation space.
Regulators around the world in Europe and Britain have been delaying or halting several deals involving large technology companies. Other examples cited include Meta’s acquisition of Giphy and Adobe’s terminated acquisition of Figma. These events highlight how regulators are increasingly focusing on investigating potential anti-competitive effects of acquisitions and partnerships between big tech companies.

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