Amazon (NASDAQ:AMZN) stock is a hot topic on Monday after the e-commerce giant terminated its plans to acquire consumer robot company iRobot (NASDAQ:IRBT).
As a result of this agreement, Amazon is paying a $94 million termination fee to iRobot. It’s also worth mentioning that the deal couldn’t move forward due to complaints from regulators that blocked its progress.
Amazon Senior Vice President and General Counsel David Zapolsky said the following about this issue:
“Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisition as one path to success, and that hurts both consumers and competition—the very things that regulators say they’re trying to protect.”
Amazon was intending to acquire the Roomba maker with cash in a deal valued at $1.7 billion. The company intended to further invest in iRobot’s cleaning technology and give it access to a more global consumer base.
What This Means for AMZN and IRBT Stock
Amazon is largely unaffected by the deal with shares up slightly as of Monday morning. However, IRBT stock is falling 15.8% at that same time with the deal being called off.
Investors will also note that iRobot has announced major changes after the deal was canceled. That includes laying off about 350 people, or roughly 31% of its workers. Chairman and CEO Colin Angle is also stepping down from the company.
Investors can seek out even more of the most recent stock market stories down below!
We have all of the hottest stock market coverage that investors need to know about on Monday! Among that is what’s happening with ZIM Integrated Shipping (NYSE:ZIM), SoFi Technologies (NASDAQ:SOFI) and Aclarion (NASDAQ:ACON) stock today. All of that news is ready to go at the links below!
More Monday Stock Market News
- Jefferies Is Pounding the Table on ZIM Integrated Shipping (ZIM) Stock
- SoFi Technologies Stock Jumps 16% After Reporting First Profit
- Why Is Aclarion (ACON) Stock Down 16% Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
