This is interesting.
IRobot had a terrible last quarter, probably a combination of supply chain issues and retailers worrying about inflation’s impact on consumer demand.
But customers mostly love iRobot, and they have a lot of strong patents.
My first question is longterm what happens to the special model deals with Costco, Walmart, Best Buy, Target, etc. Will those companies want a partnership that benefits a major rival, however indirectly?
I know most bloggers’ first question is data privacy.
Lots to think about.
The merger has been called off after EU opposition.
Personally, I find this sad.
iRobot has some real challenges ahead now.
The collapse of the deal means Amazon will pay a $94 million termination fee to iRobot, which will largely be used to pay off a $200 million loan it took out last year. As part of today’s announcement, iRobot published its preliminary fourth quarter results for 2023 and said it expects to report a GAAP operating loss of “between $265 and $285 million.”
oof. I didn’t realize this was still up for review in the EU. Seems a bit heavy handed.