Fox Business·2025-12-16 19:41Core Viewpoint - iRobot has filed for Chapter 11 bankruptcy protection and is seeking a buyout from its primary manufacturer in China after its acquisition by Amazon was blocked due to antitrust concerns [1][2][3]. Company Situation - iRobot expressed concerns about its business viability as early as March and officially filed for bankruptcy on a Sunday in Delaware [2]. - The company is facing increased competition from lower-priced rivals and new tariffs imposed in the U.S. [2]. - iRobot plans to go private following its acquisition by Picea Robotics, a Chinese firm that serves as its main manufacturer [2]. Acquisition and Regulatory Issues - The bankruptcy filing comes after Amazon's proposed $1.4 billion acquisition of iRobot was terminated in January 2024 due to an investigation by the Federal Trade Commission (FTC) and European regulators [3]. - The FTC's investigation focused on potential antitrust issues regarding Amazon's ability to prioritize its own products over competitors [3]. Leadership Perspective - Colin Angle, co-founder and former CEO of iRobot, criticized the FTC's decision to block the merger, describing it as "wrong-minded" and detrimental to innovation [4][7]. - Angle highlighted the importance of regulatory approaches that support U.S. companies in maintaining leadership in emerging industries, such as drones and electric vehicles [7][8]. Economic Implications - Angle warned that blocking mergers and acquisitions for non-antitrust reasons could discourage innovation and entrepreneurship in the U.S. [12][15]. - He emphasized that the bankruptcy of iRobot serves as a cautionary tale about the consequences of regulatory decisions that do not prioritize economic growth and consumer protection [16].