Is this the beginning of the end for Roomba?
According to the robot vacuum maker, iRobot, it’s a real possibility.
iRobot was banking on a $1.7 billion acquisition deal from Amazon, which fell apart due to regulatory issues in January 2024. Since then, iRobot has been looking for a buyer to solve its financial woes.
On Monday, iRobot shared in a regulatory filing with the SEC that talks with the last remaining potential buyer have fallen through, as CNBC reported. The company says the bidder offered a “significantly lower” price per share than what the Roomba maker’s stocks currently trade at.
iRobot’s stock dropped 33 percent on this news.
Mashable Light Speed
“We currently are not in advanced negotiations with any alternative counterparties to a potential sale or strategic transaction,” iRobot wrote in a regulatory filing with the SEC. “As such, there remains no assurance that our review of strategic alternatives will result in any transaction or outcome.”
While Roombas were once synonymous with robot vacuums in general, in recent years, the company has faced steeper competition from competing brands like Shark. Mashable shopping reporters have found Roombas often lag behind rival vacuums in testing. Robot vacuums have also evolved considerably, and new flagship robot vacuums now offer smart laser mapping, mopping, and self-cleaning. But over the past few years, iRobot has struggled to keep up with the competition.
iRobot has also faced considerable revenue problems in recent years and has struggled to pay debts.
In July 2023, iRobot took out a $200 million loan to keep operations afloat, with the expectation that the company would soon be acquired by Amazon. Now, iRobot needs to find new funding, and fast, or the company says it “may be forced to significantly curtail or cease operations and would likely see bankruptcy protection.”
This latest news isn’t a total surprise.
When the company shared its financials in March, iRobot warned that it could be out of business within 12 months. And it seems not much has changed since March, aside from the fact that we are now much closer to that 12-month mark.