{"id":26550,"date":"2024-01-24T11:23:06","date_gmt":"2024-01-24T16:23:06","guid":{"rendered":"https:\/\/usa.businessupturn.com\/?p=26550"},"modified":"2024-01-24T11:23:06","modified_gmt":"2024-01-24T16:23:06","slug":"irobot-shares-plunge-over-30-as-eu-reportedly-plans-to-block-amazons-acquisition","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/irobot-shares-plunge-over-30-as-eu-reportedly-plans-to-block-amazons-acquisition\/26550\/","title":{"rendered":"iRobot Shares Plunge Over 30% as EU Reportedly Plans to Block Amazon\u2019s Acquisition"},"content":{"rendered":"

Shares of iRobot experienced a significant drop of more than 30% in extended trading after reports surfaced that the European Union\u2019s antitrust watchdog, the European Commission, is poised to block Amazon\u2019s proposed acquisition of the smart vacuum maker. The Wall Street Journal reported that the European Commission informed Amazon representatives during a meeting on Thursday about its intention to reject the deal.<\/p>\n

Key Points:<\/p>\n

    \n
  1. Share Value Decline:<\/strong> iRobot\u2019s stock plummeted more than 30% in extended trading following reports of the potential rejection of Amazon\u2019s acquisition.<\/li>\n
  2. EU Antitrust Concerns:<\/strong> The European Commission initiated an in-depth investigation into the acquisition last July, expressing concerns that Amazon\u2019s ownership of iRobot could lead to anticompetitive practices. The EC specifically highlighted worries about Amazon hindering iRobot\u2019s competitors on its online marketplace.<\/li>\n
  3. Amazon\u2019s $1.7 Billion Deal:<\/strong> In August 2022, Amazon announced a $1.7 billion all-cash deal to acquire iRobot at a per-share price of $61. The proposed acquisition has faced scrutiny from regulators, with the European Commission expressing reservations about competition implications.<\/li>\n
  4. EC\u2019s Findings:<\/strong> The EC warned that Amazon might utilize its dominant position to disadvantage iRobot\u2019s rivals by manipulating online marketplace visibility and search results. Such actions could adversely affect competitors by delisting or reducing the visibility of their products.<\/li>\n
  5. Expected Rejection:<\/strong> The European Commission is anticipated to officially reject the deal, with a ruling expected by February 14. Reports suggest that Amazon is not planning to offer concessions to address the EC\u2019s concerns about the acquisition.<\/li>\n
  6. Ongoing Review in the U.S.:<\/strong> The deal is also under review by the U.S. Federal Trade Commission (FTC). The U.K.\u2019s Competition and Markets Authority previously stated in June that the acquisition would not substantially lessen competition in the U.K.<\/li>\n
  7. Market Reaction:<\/strong> Following the news, shares of Amazon experienced a slight decline in extended trading.<\/li>\n<\/ol>\n

    The potential rejection of the iRobot acquisition by the European Commission adds a layer of complexity to Amazon\u2019s strategic plans and underscores the increased scrutiny of large tech deals by global antitrust regulators.<\/p>\n","protected":false},"excerpt":{"rendered":"

    European Commission Expected to Reject Amazon\u2019s Planned Acquisition of Roomba Maker iRobot, Prompting Sharp Decline in Share Value<\/p>\n","protected":false},"author":331,"featured_media":26560,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[3923,2770],"class_list":["post-26550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-irobot","tag-technology"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/26550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=26550"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/26550\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/26560"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=26550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=26550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=26550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}