Amazon gave up on acquiring iRobot, and competition in the robotics industry intensified.
Recently, Amazon announced that it was abandoning its $1.4 billion acquisition of irobot, a robot vacuum cleaner. The deal could not be completed due to the intervention of EU regulators, and Amazon will pay irobot $94 million as compensation for terminating the deal. This news had a big impact on both companies, iRobot's stock price fell 10% intraday, and Amazon rose slightly by 015%。
Amazon has a long history in the field of robotics, and the acquisition of irobot is also to further expand its influence in the field of robotics. However, the increasing antitrust scrutiny of big tech companies by regulators has also put more pressure on companies such as Amazon to make acquisitions. In fact, in December, Adobe and Figma also decided to terminate their previously announced acquisition agreements because they could not obtain the necessary regulatory approvals from the European Commission and the UK's Competition and Markets Authority.
iRobot's market competitiveness has weakened in recent years, and in the second quarter of 2022, its revenue fell by 30% year-on-year, and it also announced layoffs in the same year. Amazon has tasted the sweetness of acquisitions and continues to expand beyond its main business. What's more, iRobot is also a pioneer in the field of robotics that Amazon is looking at.
For this transaction, CITIC ** pointed out after the announcement that on the one hand, the merger and acquisition will highlight the strategic value of robot assets in the context of the layout of robot tracks by major technology giants; On the other hand, the sweeping robot industry is accelerating its clearance, and the domestic leader is ushering in a good opportunity for expansion.
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