Amazon/Reuters
The vacuum cleaner giant iRobot announced today a double announcement: the purchase deal by Amazon in the amount of 1.4 billion dollars has been canceled, and in addition the company will lay off about 350 employees, as part of a significant efficiency plan.
The reason for canceling the deal?
Regulators in the European Union expressed concern that the purchase would harm competition in the robotic vacuum cleaner market, and threatened to block it.
Amazon was unable to offer satisfactory solutions by the set deadline, and was forced to abandon the ambitious plans.
Amazon and Aerobot first announced the deal in August 2022. The British Competition Authority approved the move in June 2023, but in the European Union things got complicated.
In November 2023, the European Commission announced that it had concerns that the acquirer would harm competition.
Amazon had until January 10 to offer solutions, but as mentioned, its efforts did not bear fruit.
Regulators in the European Union expressed concern that the acquisition would harm competition in the robotic vacuum cleaner market.
Aerobot/ShutterStock
Meanwhile, AirRobot is dealing with other consequences of canceling the deal.
The company's CEO, Colin Engel, will step down after 34 years as the driving force behind Roomba's development and success. In addition, the company will lay off approximately 31% of its employees (350 employees) and reduce its presence in certain locations.
Amazon claims that the decision prevents companies from growing in the global market, and harms the end of talk about consumers and innovation. In fact, the cancellation of the Amazon and Aerobot deal is another drop in the sea of large technology deals that have failed in recent years, following the increased supervision of global regulators. Adobe had to give up the acquisition of Figma in the amount of 20 billion dollars, and Meta (Facebook) had to give up Giphy purchase.
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