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Roomba model from 2015: Robot vacuum cleaner sold millions of times
Photo: Eugene Hoshiko / AP
Because of resistance from European competition watchdogs, Amazon decided not to take over iRobot. The company announced on Monday that it saw no way to obtain EU approval for the billion-dollar deal. According to earlier statements from insiders, the international community wanted to veto the purchase of the supplier of vacuum cleaner robots because this would have further strengthened the already strong position of the world's largest online retailer in the market for intelligent household appliances. Amazon already owns the assistance system “Alexa” and the home surveillance specialist “Ring”.
Amazon announced in August 2022 that it would buy iRobot. At that time, the trading group offered $61 per share, which resulted in a total price of around $1.7 billion. During the takeover process, the price fell by 15 percent to around $1.4 billion.
iRobot was founded in 1990 by three employees at the Artificial Intelligence Laboratory at the Massachusetts Institute for Technology (MIT). Initially, iRobot developed robots for the military and police. However, the company has become known as the manufacturer of the vacuum cleaner robot called Roomba. The first model was introduced in 2002. According to the company, 30 million units were sold by 2020.
In response to the collapsed takeover, iRobot's shares fell by almost 20 percent in pre-market US business and, at $13.76, were as cheap as they were last more than 14 years ago. The company announced major restructuring measures that include laying off 31 percent of its workforce, or 350 employees. CEO Colin Angle will leave iRobot.
For now, however, not all connections should be cut: Roombas can be controlled via Amazon's digital voice assistant Alexa, and iRobot has been using Amazon servers for years.
Amazon titles remained slightly positive before the trading session.
pbe/Reuters