In the world of large corporations, strategic decisions can quickly change the fortunes of an entire industry. Recently, Amazon e iRobot have announced a significant turning point in their joint journey: the decision to terminate the acquisition agreement previously announced. This change of course, influenced by regulatory issues, puts to rest rumors that the prices of Roomba robots would drop di price after the acquisition by e-commerce.
Why Amazon will no longer buy iRobot
The news took everyone by surprise: Amazon, the e-commerce giant, and iRobot, a pioneer in the production of robotic vacuum cleaners, have decided to cancel their acquisition agreement. The decision was taken in the face of difficulties encountered with European regulators. The two companies released a joint statement, highlighting the lack of a clear path to obtaining regulatory approval in the European Union, an insurmountable obstacle to completing the acquisition.
Amazon's initial proposal was to purchase iRobot for approximately 1,7 billion dollars, a move that could have marked a significant turning point in the home robot market. However, the regulatory concerns they prevented this ambitious project from becoming reality. David Zapolsky, Senior Vice President and General Counsel of Amazon, expressed his regret for the failure of the operation, underlining Amazon's interest in the future of home robotics and his appreciation for iRobot products, known for their ability to improve the daily life of consumers.
Specifically, the European Commission feared that Amazon might leverage user data collected by iRobot robot vacuum cleaners to consolidate its market position. Such data could provide an invaluable competitive advantage, allowing Amazon to better understand consumer habits and preferences, and consequently, to personalize the offer and strengthen its presence on the market.
Following the cancellation of the acquisition, iRobot will receive a from Amazon compensation of 94 million dollars. However, the decision also necessitated an operational restructuring plan for iRobot, which includes the dismissal of approximately 350 employees, equivalent to 31% of the company's workforce, by the end of March.
Colin Angle, Chairman of the Board of Directors and CEO of iRobot, announced his resignation from both positions, giving way to Glen Weinstein, Executive Vice President and Chief Legal Officer, as interim CEO. Andrew Miller, an independent member of the iRobot board, was appointed Chairman of the Board, while Jeff Engel, a turnaround expert, will lead the implementation of the restructuring plan.
