Amazon buys Roomba manufacturer iRobot in $1.7 billion deal: Online retail giant's 4th largest acquisition follows second straight quarter of massive losses

  • iRobot was founded in 1990, and the company is best known for its automated cleaning device, Roomba 
  • This is Amazon's fourth biggest deal to date, with its acquisition of Whole Foods Market in 2017 still sitting at the top after costing $13.7billion 
  • In 2021, the company acquired five others - Umbra 3D, TV and film company Metro-Goldwyn-Mayer, Art19, Wickr and Veeqo 
  • Last week, Amazon announced a massive loss for the second straight quarter, as consumers returned to brick-and-mortar stores 

Amazon has bought iRobot, the technology masterminds behind the Roomba robot vacuum, for an eye-watering $1.7billion deal.

The tech company have sold millions of the popular vacuum designs and automated cleaning devices, which they have specialized in since 2002. 

Amazon intends to keep Colin Angle as the CEO of iRobot, and the acquisition will increase the company's stake in consumer robotics - alongside tech devices like Ring and Alexa. 

Announcing the acquisition, Dave Limp, SVP of Amazon Devices, said: 'Over many years, the iRobot team has proven its ability to reinvent how people clean with products that are incredibly practical and inventive — from cleaning when and where customers want while avoiding common obstacles in the home, to automatically emptying the collection bin.

Amazon has bought iRobot for an eye-watering $1.7billion. This will be Amazon's fourth-biggest acquisition. Tech company iRobot have sold millions of the popular vacuum designs and automated cleaning devices, which they have specialized in since 2002

Amazon has bought iRobot for an eye-watering $1.7billion. This will be Amazon's fourth-biggest acquisition. Tech company iRobot have sold millions of the popular vacuum designs and automated cleaning devices, which they have specialized in since 2002

Dave Limp, SVP of Amazon Devices, said: 'I’m excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable'

Dave Limp, SVP of Amazon Devices, said: 'I’m excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable'

'Customers love iRobot products — and I’m excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable.' 

iRobot was founded in 1990, and the company is best known for its automated cleaning device, Roomba.  

This is Amazon's fourth biggest deal to date, with its acquisition of Whole Foods Market in 2017 still sitting at the top after costing $13.7billion. 

Behind that was Amazon's purchase of film studio Metro-Goldwyn-Mayer for $8.45billion and care provider One Medical for $3.9billion.

Amazon's four acquisitions this year have been Strio.AI, GlowRoad, primary healthcare clinics One Medical and iRobot.

In 2021, the company acquired five others - Umbra 3D, TV and film company Metro-Goldwyn-Mayer, Art19, Wickr and Veeqo. 

Last week, Amazon announced a massive loss for the second straight quarter, thought to be caused as consumers returned to brick-and-mortar stores. The company also had a net loss due to their Rivian investment.

Apple also shared lukewarm news, revealing that its profits fell 11 percent thanks to supply chain issues caused by the pandemic and China's COVID lockdowns.

iRobot Roomba 980 cleaning vacuum. Amazon intends to keep Colin Angle as the CEO of iRobot, and the acquisition will increase the company's stake in consumer robotics - alongside tech devices like Ring and Alexa

iRobot Roomba 980 cleaning vacuum. Amazon intends to keep Colin Angle as the CEO of iRobot, and the acquisition will increase the company's stake in consumer robotics - alongside tech devices like Ring and Alexa

Amazon's market summary has taken a dip in the last six months, after the company announced a massive loss for the second straight quarter

Amazon's market summary has taken a dip in the last six months, after the company announced a massive loss for the second straight quarter

Tech stocks were rallying after-hours, however, because both Apple and Amazon's sales surpassed expectations - despite inflation and economic turmoil raising fears of a recession.

Amazon sales topped $121 billion in the quarter, but the company logged a loss of $2 billion dollars as it continued to work to rein in costs.

Many of those were related to expansion during the sales bonanza it experienced at the start of COVID. The loss was less than during the first quarter of this year, however, when the company announced a $3.8 billion loss. That loss was the first since 2015, and was also impacted by a large write-down on their electric vehicle company, Rivian.

Amazon's shares still jumped 12 percent in after-hours trading.

CEO Andy Jassy said in a statement that Amazon is seeing its revenue accelerate as it invests in its Prime membership and offers more benefits to members, such as its recent deal to give free access to meal delivery service Grubhub for a year. 

He said Amazon continues to feel inflationary pressure from higher energy and transportation costs, but it has been making progress controlling expenses related to its fulfillment network. 

Between 2019 and 2021, Amazon nearly doubled the number of warehouses and data centers it leased and owned to keep up with rising consumer demand.

But as consumers shifted their habits, Amazon found itself with too many workers and too much space, which added billions in extra costs.

The company has been subleasing some of its warehouses, ending some of its leases and deferring construction on others to deal with the problem.

Brian Olsavsky, Amazon's chief financial officer, said during a media call on Thursday that the company is slowing down its expansion plans for this year and the next, in order to better align with customer demand.

On the labor side, Amazon has been able to reduced its headcount through attrition and staffing levels were more in-line with demand, Olsavsky said.

Full list of Amazon's acquisitions since 1998  

  1. Bookpages
  2.  Telebook 
  3.  IMDb
  4.  Junglee
  5.  PlanetAll 
  6.  LiveBid.com
  7.  Accept.com
  8.  Alexa Internet
  9.  e-Niche Incorporated
  10.  Convergence Corporation
  11.  Tool Crib of the North (Online and Catalog Sales Division)
  12.  Back to Basics Toys
  13.  Leep Technology Inc.
  14.  MindCorps Incorporated
  15.  Egghead Software
  16. OurHouse.com 
  17. Joyo.com 
  18. BookSurge 
  19. Mobipocket 
  20. CustomFlix 
  21. smallparts.com
  22.  Shopbop
  23.  TextPayMe
  24.  Digital Photography Review
  25.  Brilliance Audio
  26.  Withoutabox
  27. Audible
  28. Fabric.com
  29.  AbeBooks
  30.  Shelfari
  31.  Reflexive Entertainment
  32.  Box Office Mojo
  33.  Lexcycle
  34.  SnapTell
  35. Zappos 
  36. Touchco 
  37. Woot 
  38. Amie Street 
  39. BuyVIP 
  40. Quidsi 
  41. Toby Press 
  42. LoveFilm 
  43. The Book Depository 
  44. Pushbutton 
  45. Yap 
  46. Double Helix Games 
  47. Teachstreet 
  48. Kiva Systems 
  49. Evi 
  50. Avalon Books 
  51. UpNext 
  52. IVONA Software 
  53. Goodreads 
  54. Liquavista 
  55. TenMarks Education, Inc.
  56.  ComiXology
  57.  Amiato
  58.  Twitch Interactive
  59.  Rooftop Media
  60.  GoodGame
  61.  Annapurna Labs
  62. 2lemetry
  63.  Shoefitr
  64.   ClusterK
  65. AppThwack 
  66. Elemental Technologies 
  67. Safaba Translation Systems 
  68. Biba Systems 
  69. Orbeus
  70.  NICE
  71.  Emvantage Payments
  72.  Cloud9 IDE
  73.  Curse, Inc.
  74.  Westland
  75.  Partpic
  76.  harvest.ai
  77.  Thinkbox Software
  78.  Do.com
  79.  Whole Foods Market
  80.  Souq.com
  81.  Graphiq
  82.  GameSparks
  83. Wing.ae 
  84. Body Labs 
  85. Goo Technologies 
  86. Dispatch 
  87. Blink Home 
  88. Sqrrl 
  89. Ring 
  90. PillPack 
  91. Tapzo 
  92. CloudEndure 
  93. TSO Logic 
  94. Eero
  95.  Canvas Technology
  96.  Sizmek Ad Server and Sizmek Dynamic Creative Optimization
  97.  Bebo
  98.  E8 Storage
  99. IGDB
  100.  INLT
  101.  Zoox
  102.  Wondery
  103.  Umbra 3D
  104.  Metro-Goldwyn-Mayer
  105.  Art19
  106.  Wickr
  107.  Veeqo
  108.  Strio.AI
  109.  GlowRoad
  110.  One Medical
  111.  iRobot

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Amazon buys Roomba manufacturer iRobot in $1.7 billion deal: Online retailer's 4th largest purchase

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