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Wall Street ruined the Roomba and then blamed Lina Khan

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Re: Wall Street ruined the Roomba and then blamed Lina Khan

#51
post #40
post #34

Earlier quoted context omitted.

"On Monday, the FTC requested more information from both companies about the $1.7 billion deal, according to an investor filing from iRobot, in what’s known as a “second request” and an indicator of deeper scrutiny by antitrust officials." https://www.cnn.com/2022/09/20/tech/roomba-amazon-ftc-invest...

In other words, they didn’t shut it down.

There are later press communications where Khan's FTC took credit for it. There was a strong implication they let the EU do the lifting but would have filed suit if they hadn't.

Re: Wall Street ruined the Roomba and then blamed Lina Khan

#53

To be honest the Roomba sucked and got eaten alive by better chinese competitors. I bought a top of the line expensive Roomba years ago and ended up switching to neato a year later, because I would just come home and it would be stuck on something.

Sucked not the ideal pejorative for a vacuum

"We have not yet begun to truly suck."

Re: Wall Street ruined the Roomba and then blamed Lina Khan

#54

Earlier quoted context omitted.

That is probably true. But Roomba sucked in the early 2000's too. They never got better.

I believe the author's thesis is that if they had invested in innovation over a couple decades, the product probably would have sucked less.

The innovation being shutdown wasn't innovation towards making robot vacuum cleaners better. It was innovation direct towards military applications like building robotic hands.

Re: Wall Street ruined the Roomba and then blamed Lina Khan

#55

To be honest the Roomba sucked and got eaten alive by better chinese competitors. I bought a top of the line expensive Roomba years ago and ended up switching to neato a year later, because I would just come home and it would be stuck on something.

[dead]

Re: Wall Street ruined the Roomba and then blamed Lina Khan

#56

Hard for me to understand how the consumer was protected by preventing Amazon from acquiring them. Only for Chinese firm to get for cheap in bankruptcy. But maybe I’m not educated enough in socialism to understand the nuances

The foundational minds in Capitalism called for the need for government controls on it to keep markets healthy. It is LITERALLY Capitalism to have government oversight and intervention.

Re: Wall Street ruined the Roomba and then blamed Lina Khan

#57
post #46

A huge fraction of the knee-jerk reactions here seem to miss the key point that the post is trying to get across: > In the mid-2010s, during Furman’s tenure running economic policy under Obama, the company sold its defense business, offshored production, and slashed research, a result of pressure from financiers on Wall Street. > Mesdag engaged in a proxy fight to wrest control of the company from its engineering fou…

> Thing is, if you slash research

And if you dump your defence contracts you may have trouble paying for research.

Re: Wall Street ruined the Roomba and then blamed Lina Khan

#58

To be honest the Roomba sucked and got eaten alive by better chinese competitors. I bought a top of the line expensive Roomba years ago and ended up switching to neato a year later, because I would just come home and it would be stuck on something.

How much difference was made by the Chinese competitors being able to use whatever IP they wanted, and Roomba being constrained by law and licensing, and not being able to enforce their own IP? What were the consequences of having to engage with China for manufacturing, effectively giving them the capability to clone any R&D on the fly, without having to figure things out themselves?

How much did regulation and taxation and red tape play into Roomba's inability to compete?

What sort of VC deals were they shackled by, in order to siphon off the data and abuse it for third party marketing, and other forms of enshittification?

There's a lot that American companies have been held back by. Some of it is actually good, consumer protective and well crafted, but it won't work if you allow other players in the same market to ignore the regulations and restrictions without consequences. Other policy is just stupid and self destructive, and other policies border on malignant, deliberately giving foreign companies significant advantages, directly and indirectly, without any other purpose.

American companies are way too easily forced into a race to the bottom dynamic, resulting in failure and huge wastes of money and effort.

Re: Wall Street ruined the Roomba and then blamed Lina Khan

#59
post #46

A huge fraction of the knee-jerk reactions here seem to miss the key point that the post is trying to get across: > In the mid-2010s, during Furman’s tenure running economic policy under Obama, the company sold its defense business, offshored production, and slashed research, a result of pressure from financiers on Wall Street. > Mesdag engaged in a proxy fight to wrest control of the company from its engineering fou…

[dead]

Re: Wall Street ruined the Roomba and then blamed Lina Khan

#60

Earlier quoted context omitted.

What is the current AI/data center mega-boom if not forgoing short-term extraction for long-term value creation?

Given how many people are getting rich from the inflated stock prices of every AI-adjacent company right now, including the ones with no obvious path to profitability, I could make the argument that they're already in a short term extraction phase. (I'm also not sure if putting a significant % of the population out of work will create long term value to society.)

The stocks are inflated because Wall Street believes current $$$$$ capital investments will create massive long-term value!!
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