Amazon just terminated the iRobot deal: find out more

iRobot Corporation tanked another 15% on Monday after Amazon.com Inc terminated plans of buying the consumer robots company for $1.7 billion.

The multinational cited “no path to regulatory approval” for pulling out of its all-cash agreement with iRobot that will now receive $94 million from Amazon in break-up fee.

The news arrives shortly after a Wall Street Journal report that the European Union is unlikely to approve the Amazon-iRobot transaction.

Note that Amazon is scheduled to report its financial results for the fourth quarter on February 1^st. Consensus is for it to earn 81 cents a share versus 21 cents per share a year ago.

Amazon stock is trading slightly in the green following the iRobot announcement on Monday.

Also today, iRobot Corporation said it will suspend working on “non-floorcare” products to focus on improving margins.

The Nasdaq-listed firm will cut spending on R&D and lower its headcount by 31% as well. Colin Angle – its chief executive also stepped down from the role and said in a press release on Monday:

iRobot now turns toward the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations that make life better.

This is a developing story. Refresh the page in a few minutes for more updates!

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