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Amazon is scrapping its takeover of Roomba maker iRobot
Itâs been a terrible start to the year for iRobot. The Roomba makerâs shares are down about 60% this month after plans to sell to Amazon unravelled. Now the deal is dead, itâs laying off a third of its team, and its CEO has left. Youâd need one hell of a machine to clean up that mess.
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Amazon scraps deal with Roomba maker
Amazon says itâs scrapping a planned acquisition of iRobot after the two companies saw no path to regulatory approval. The deal would have valued the Roomba maker at roughly $1.7 billion.
Earlier this month, the Wall Street Journal reported that the EU intended to block the transaction ($). The European Commission launched an investigation in July, saying the deal could result in Amazon hindering iRobotâs competitors from competing in its search results.
Amazon will pay iRobot a $94 million breakup fee, but the failed deal has left the vacuum maker in difficulty. Itâs laying off almost a third of its workforce â about 350 people â and its CEO is stepping down immediately. The companyâs stock tanked 10% on the news, adding to a 30% drop following the Wall Street Journal report.
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â Not Jerome Powell (@alifarhat79)
7:53 PM ⢠Jan 29, 2024