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…
Wall Street ruined the Roomba and then blamed Lina Khan
91–100 of 213 posts
Re: Wall Street ruined the Roomba and then blamed Lina Khan
#92This is such a bad faith, and frankly dishonest take on the situation. As you know, Khan’s FTC worried it wouldn’t be able to prevent Amazon’s acquisition of iRobot in court, so instead it dragged out approval, which it never granted, while continuously threatening to block. Simultaneously, her FTC openly worked with the EU to convince the EU to use its more expansive antitrust regime to get the EU to block the deal.…
Re: Wall Street ruined the Roomba and then blamed Lina Khan
#93To 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
Re: Wall Street ruined the Roomba and then blamed Lina Khan
#94Earlier quoted context omitted.
The article claims EU didn't challenge the deal, only requested information about the market and possible unfair practices. https://ec.europa.eu/commission/presscorner/detail/en/ip_23_...
Preparing all the requested information can be expensive. It is likely enough to kill many deals.
Re: Wall Street ruined the Roomba and then blamed Lina Khan
#95A 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…
This is what's wrong with investing overall: 1Q future blindness. We'd have almost nothing if it weren't for university partnerships and corporate R&D way back when. There's no way to accomplish this now except to stay private.
cue all the lamentations about how evil private equity is.
Re: Wall Street ruined the Roomba and then blamed Lina Khan
#96Earlier quoted context omitted.
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
#97A 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…
This is what's wrong with investing overall: 1Q future blindness. We'd have almost nothing if it weren't for university partnerships and corporate R&D way back when. There's no way to accomplish this now except to stay private.
Interestingly enough the R&D portion that was sold off, became Endeavor Robotics which was sold to Teledyne FLIR Systems and seems to be doing fine.
Re: Wall Street ruined the Roomba and then blamed Lina Khan
#98This is a fantastic video essay on iRobot's strategy/leadership mistakes. The company was distracted and stubbornly out of tune with what consumers wanted: https://www.youtube.com/watch?v=44XYQepBF7g The patent expiry sealed the deal.
Why not let Amazon take a stab at turning things around, then? It's better that they fail? I don't get it.
Re: Wall Street ruined the Roomba and then blamed Lina Khan
#99Earlier quoted context omitted.
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 taxat…
No one ever forced any company to work with China. They all went to China over decades because it was cheaper and made more profits, knowing full well there’d be technological transfer since it was always China’s goal and even explicit in contracts and agreements. Being surprised now that profits became technology transfer and China is now a real competitor is useless. They knew it, just didn’t think the Chinese coul…
They also missed out on AI getting good - by the time transformers came around and people realized they'd be really useful for stuff like Roombas, it was too late, and with shareholders just looking to cash out and minimize their losses toward the end, there's not a lot that could have been done to save it. Even if they'd gone to Amazon, there wasn't a lot left that had value beyond the branding, imo.
I think American companies would be more successful and higher quality if the regulation and IP policy we embraced were reciprocal. As it stands, unless you're Apple or Samsung or a giant, you have to win the CCP PR lottery for any sort of accountability with Chinese companies. Most of the time they're going to ignore you, because there's no downside. It's only in those cases where there are political ramifications, individuals being embarassed, or they feel a need to trot out a "look how conscientious and good faith we are in the international markets!" piece useful for other wheeling and dealing.
Re: Wall Street ruined the Roomba and then blamed Lina Khan
#100Earlier quoted context omitted.
Sure, but the author is arguing that the outcome you're describing is tightly coupled to the perverse incentives that he describes in the article. Investors pushed the company towards extraction over innovation and the end product suffered as a result.
That is probably true. But Roomba sucked in the early 2000's too. They never got better.