Amazon's iRobot Deal Faces Likely Rejection From EU Competition Watchdog: Report
Portfolio Pulse from Michael Cohen
The EU competition watchdog is likely to reject Amazon's $1.7-billion acquisition of iRobot, known for Roomba vacuum cleaners. The decision could halt Amazon's expansion, and iRobot's stock dropped over 40% after-hours following a 14.23% drop in the regular session. Amazon missed a deadline to propose remedies for competition concerns, and the final decision is expected by Feb. 14. iRobot shares fell to $14.08 in after-hours trading.
January 18, 2024 | 11:30 pm
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NEGATIVE IMPACT
Amazon's planned acquisition of iRobot faces likely rejection by the EU, which could impede its expansion strategy and affect investor sentiment.
The likely rejection of the acquisition by the EU could negatively impact Amazon's stock in the short term due to the halt of a significant expansion move and potential investor concerns over regulatory hurdles.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
iRobot's stock plummeted over 40% in after-hours trading due to the EU's likely rejection of its acquisition by Amazon.
The news of the likely rejection has already caused a significant drop in iRobot's stock price, indicating a strong negative short-term impact on investor sentiment and the stock's performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100