Why iRobot Went Bankrupt – Critics Blame Elizabeth Warren

Benzinga 2025-12-16

Views 2.7K

iRobot, the company behind the iconic Roomba vacuum, has filed for Chapter 11 bankruptcy — and now a political firestorm has followed.

In this video, we break down how a blocked $1.7 billion Amazon acquisition in 2022 became central to today’s controversy, as critics point fingers at Senator Elizabeth Warren years after she opposed the deal on antitrust grounds.

Here’s what happened:

Why Amazon’s proposed purchase of iRobot was blocked by regulators and lawmakers

How overseas competition, tariffs, debt, and rising costs pressured iRobot’s finances

Why the company now plans to sell its assets to a China-based robotics supplier

How social media backlash, Community Notes, and investor criticism reignited the debate

Why some are questioning whether blocking the deal actually hurt U.S. jobs and competition

We also look at parallels to other blocked mergers, including JetBlue and Spirit Airlines, and the broader question investors are now asking:

Did antitrust intervention protect consumers — or accelerate the collapse of American companies?

This story sits at the intersection of markets, regulation, geopolitics, and corporate survival, and it raises uncomfortable questions about unintended consequences.

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