Amazon To Acquire iRobot for $1.7 Billion
The Robots Come Home
During the pandemic, technology was leaned on to carry out work duties remotely. For some Americans, it also played a role in keeping the house clean. Enter the housekeeping robot. Back in 1990, MIT scientists developed a vacuum that could clean floors independent of human involvement. In 2020 and 2021 iRobot’s (IRBT) Roomba vacuum took off in popularity and the company’s share price soared.
Today its fortunes have reversed. Amid declining revenue and mounting losses its share price has plunged. It seems the company became available for sale, and Amazon (AMZN) has decided to do a little bargain hunting.
Amazon’s $1.7 Billion Deal
Amazon has announced it will buy iRobot for $1.7 billion in a strategic move to build out its inventory of consumer robotics. The purchase comes on the heels of its 2021 launch of the Astro household robot, an Alexa-enabled home-monitoring tool. These products complement the tech giant’s line-up of smart home tools, such as its Ring doorbells and voice-activated appliances.
The move will also give Amazon an expanded view into a different breed of consumer – early adopters. As the competition for advertising dollars heats up, the company has won market share due to its growing silo of customer data. The value of this competitive advantage has spiked following Apple’s (AAPL) recent changes to its privacy rules.
To-Do List Help
Time-strapped consumers may cheer the ever-expanding supply of products designed to offload those pesky, circular, must-do tasks. iRobot’s Roomba was just the beginning for the innovative tech company. Robotic mops and pool cleaners have also been added to the product line.
Regardless of the company behind the product, the promise of getting a little help at home might prompt more people to become early adopters. A sparkling clean home may well-compensate the risk associated with taking a leap of faith into the robotics space.
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