Pointers at Glance
- Amazon is about to acquire iRobot in a cash deal of $1.7 billion.
- It is taking this decision to continue its standing in the robotics industry.
- With this acquisition, Amazon’s control over iRobot’s Roomba technology gives them access to digital maps of people’s homes.
Amazon is acquiring iRobot in an all-cash deal for $1.7 billion. This acquisition is one of the most significant purchases of Amazon to date. It comes in the wake of its $3.9 billion acquisition of primary care tech group OneMedical, and the $8.5 billion purchase of MGM.
Amazon is making good on its mission to continue its standing in the robotics industry. While its concentration has been mainly on scaling up the presence of warehouse and fulfillment center robots, it also launched its answer to domestic robots with the small-wheeled robot Astro in 2021. However, the response to Astro has been lukewarm as the home assistant is only available in small quantities and can be bought through invitation only.
Though awaiting standard regulatory approval, the iRobot acquisition would be a significant moment for Amazon.
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News of the deal has already raised concern about the motives behind the purchase, with some saying Amazon’s control over iRobot’s Roomba technology gives them access to digital maps of people’s homes. Its acquisition of video doorbell maker Ring in 2018 sparked similar concerns, especially when it was revealed that record amounts of video doorbell footage were given to the government throughout 2021.
Regarding Roombas, the bots have become increasingly sophisticated, with more accurate sensors included in the latest models to create holistic 3D maps of users’ homes. Therefore, privacy concerns are at the forefront of customers’ minds, and Amazon said in a statement that protecting customer data is incredibly important.
While the outcome of the proposed deal remains to be seen, it indicates where Amazon’s sights are turning, with conquering home robots an integral part of its business model moving forward.
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