Problem
I. What is Amazon attempting to do to iRobot? To what other companies has Amazon attempted this in the past? Were they successful?
II. Why are regulators opposed to the iRobot deal? What other recently attempted deal is receiving scrutiny on the same grounds?
III. From your perspective, is the proposed deal a vertical, horizontal, or conglomerate acquisition? Is this type of acquisition typically questioned on grounds of competition? Why or why not?
IV. iRobot is the dominant force in robotic vacuums. Does that fact by itself make Amazon's proposed acquisition of iRobot anti-competitive? Why or why not? What would need to be true of Amazon's businesses for this acquisition to be anti-competitive?
V. iRobot's stock price has returned to its 30-day average from before the deal announcement. What does that tell us about the amount of additional information contained in Amazon's bid for iRobot?
VI. What potential synergies do you see from the proposed deal? If synergies do not exist (no incremental value created), what do you suspect is the driving force behind the proposed acquisition? (Hint: Roll (1986)).