Amazon's iRobot Acquisition Deal Officially Dead, iRobot Lays off 350 People as CEO Steps Down

Amazon's proposed acquisition of iRobot, the maker of Roomba, has officially been terminated, a year and a half after the deal was announced. The termination comes after the European Union's refusal to grant regulatory approval for the acquisition. Amazon had initially lowered its purchase price from $1.7 billion to $1.4 billion last July. As part of the termination agreement, Amazon will pay iRobot a previously agreed upon $94 million breakup fee.

The deal's collapse has had a significant impact on iRobot's market capitalization, which is now under $400 million. iRobot will be laying off 350 employees, which accounts for nearly one-third of its total headcount. The company's long-time CEO, Colin Angle, has stepped down from his position, and executive vice president Glen Weinstein will serve as the interim CEO.

The termination of the deal reflects the increasing regulatory scrutiny faced by large technology companies, with the European Union and other regulatory bodies delaying or halting several deals. Both Amazon and iRobot expressed disappointment over the termination of the acquisition agreement, citing the denial of faster innovation and more competitive prices for consumers.