IRBT - iRobot Stock: Buy Sell or Hold?
2024-03-18 08:15:00 ET
Over a year after Amazon (NASDAQ: AMZN) announced its intention to acquire iRobot (NASDAQ: IRBT) , the deal fell through following a mutual agreement to terminate the deal. Now, the company best known for its Roomba line of robot vacuum cleaners is trading near an all-time low, and will need to stand on its own wheels.
Let's examine why Amazon's acquisition of iRobot fell through, how iRobot is pivoting, and whether it's worth investing in the consumer robot company.
In late 2022, Amazon announced its plans to acquire iRobot through an all-cash transaction valued at $1.7 billion with a buyout offer of $61 per share. That offer was modified in July 2023 when iRobot incurred an additional $200 million in debt to support its operations, resulting in a new buyout price of $1.4 billion, or $51.75 per share.
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iRobot Stock: Buy, Sell, or Hold?