On January 29, local time, Amazon and iRobot issued a joint statement saying that they agreed to terminate the pending acquisition.。

The two sides said in a statement that Amazon's proposed acquisition of iRobot could not be approved by EU regulators, which hinders Amazon and iRobot from moving forward together, which is a loss for consumers, competition and innovation.。

In August 2022, Amazon announced it would buy iRobot for $1.7 billion.。The UK Competition and Markets Authority gave the deal a "green light" but was blocked when Amazon submitted the deal to EU regulators.。The EU blocked the deal, mainly because of concerns that Amazon's industry leadership hurt market competition.。

EU regulators became involved in the deal in July last year and launched an in-depth investigation.。At the end of November, EU regulators issued a statement of opposition to the deal, saying Amazon's acquisition of iRobot would harm the robot vacuum cleaner (RVC) market and allow Amazon to strengthen its position in online marketplaces and other data-related services.。

EU regulators said in a statement that Amazon may promote iRobot's products under labels such as "Amazon's Choice" or "Work with Alexa" and reduce the heat on other robot vacuum cleaner brands.。Amazon is an important online sales channel for robot vacuum cleaners in countries such as France, Germany, Italy and Spain.。

David Zapolsky, senior vice president and general counsel at Amazon, expressed "disappointment" at the forced termination of the acquisition.。Zapolsky said: "We are very grateful to all those who have worked tirelessly to achieve this collaboration.。This result will deprive consumers of faster innovation and more competitive prices, which we believe will make their lives easier and more enjoyable.。"

"Such acquisitions help companies like iRobot better compete in the global marketplace, especially with companies and countries that are not subject to the same regulatory requirements in fast-moving technology areas like robotics."。And inappropriate and disproportionate regulatory hurdles keep entrepreneurs away, and they should be able to see acquisitions as one of the paths to success, but that hurts consumers and competition - and that's exactly what regulators say they're trying to protect.。"

Colin Angle, founder of iRobot, said: "The termination of the agreement with Amazon is disappointing, but iRobot is now turning to the future with a focus and commitment to continue to build thoughtful robotics and smart home innovations that will make life better and loved by customers around the world.。"

iRobot has a "dark moment"

As the world's largest online retailer, Amazon has laid out the smart home track through multiple acquisitions over the years.。For example, the acquisition of security camera brand Blink, video doorbell brand Ring, etc.。For the deep-pocketed Amazon, the failure to acquire iRobot is just a pity, but for iRobot, the news is simply a "bolt from the blue."。iRobot fell more than 17% at one point in the session after news of the termination of the acquisition was released。The company's share price has fallen by 60% this year.。

Based on the preliminary results disclosed by iRobot, the company is expected to have revenue of 8 for the full year 2023..$9.1 billion, a decrease of 25% from the same period last year, and an operating loss under GAAP of 2.65 to 2.Between $8.5 billion, non-GAAP operating loss was approximately $200 million.。

Subsequently, iRobot announced on the company's official website that it will implement an operational restructuring plan aimed at keeping the company stable in the current environment while focusing on profitability and advancing key growth initiatives to expand its market share in the mid- and high-end markets.。

According to iRobot, the top priority of the restructuring plan is to reduce costs and improve profitability.。To this end, the company will take a number of measures, including outsourcing non-core positions, reducing sales and marketing costs, closing some underperforming offices, and laying off more than 30% of its workforce, affecting about 350 employees.。

In addition to this, iRobot also announced a leadership transition, and Colin Angle, Chairman and CEO of the Board, has resigned from all positions.。iRobot Executive Vice President and Chief Legal Officer Glen Weinstein has been named interim CEO and Andrew Miller, the Board's lead independent director, has been named Chairman of the Board.。

Under the terms of the acquisition agreement, Amazon will pay iRobot a $94 million termination fee if the acquisition is unsuccessful.。

It is said that the SEC originally planned to "ambush in the back"

Even if Amazon's acquisition of iRobot goes through with European regulators, it could be blocked by U.S. regulators next。

There are reports that the US Federal Trade Commission (FTC) is preparing to reject Amazon's deal before Amazon announces that it is abandoning the acquisition。Sources said FTC staff met with Amazon associates last week to inform them that the FTC plans to recommend that the committee vote to sue to block the takeover.。

The source also revealed that the committee was originally scheduled to hold its last meeting with Amazon on Monday (January 29) local time.。After the meeting, the committee will vote to approve a legal challenge to the deal。

Similar to the EU's starting point, the FTC's focus on the deal was driven by concerns about market competition and privacy data.。The FTC previously said the commission had been looking at the deal since September 2022.。The committee argued that the deal would give Amazon too much control over the smart home device market and the privacy data of U.S. households.。

Notably, Amazon is also currently facing lengthy court proceedings with the FTC in Seattle federal court.。The focus of litigation is largely around antitrust.。The FTC accused Amazon of using illegal tactics to boost profits at its online retail business and consolidate its industry lead.。