Amazon just terminated the iRobot deal: find out more

iRobot Corporation (NASDAQ: IRBT) tanked another 15% on Monday after Amazon.com Inc (NASDAQ: AMZN) terminated plans of acquiring the consumer robots company for $1.7 billion.

Why did Amazon pull out of iRobot deal?

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.

Watch here: https://www.youtube.com/embed/YJeiCYnihtw?feature=oembed

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.

iRobot Corporation announces a layoff

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.

15,600+ people have been laid off in tech so far, in January 2024.

If you see an artist-hating person making the inevitable “learn to code” comment, you can tell them to fuck off.

A short thread on layoffs: 1/ pic.twitter.com/8lI1d1KEVm

— Jingna Zhang (@zemotion) January 25, 2024

iRobot saw its revenue crash 33% on a year-over-year basis to $186 million in its latest reported quarter. Its shares are now down close to 70% versus their 52-week high in June of 2023.

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