📈 Clean break.

Amazon is scrapping its takeover of Roomba maker iRobot

It’s been a terrible start to the year for iRobot. The Roomba maker’s shares are down about 60% this month after plans to sell to Amazon unravelled. Now the deal is dead, it’s laying off a third of its team, and its CEO has left. You’d need one hell of a machine to clean up that mess.

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Amazon scraps deal with Roomba maker

Amazon says it’s 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 iRobot’s 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. It’s laying off almost a third of its workforce – about 350 people – and its CEO is stepping down immediately. The company’s stock tanked 10% on the news, adding to a 30% drop following the Wall Street Journal report.

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