Wall Street Ruined the Roomba and Then Blamed Lina Khan
62 comments
·December 19, 2025daft_pink
km144
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.
Grosvenor
That is probably true. But Roomba sucked in the early 2000's too. They never got better.
viscanti
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.
kibwen
And the commenter above is highlighting the article's hypothesis about why they never got better.
vincefutr23
Sucked not the ideal pejorative for a vacuum
ulrashida
"We have not yet begun to truly suck."
observationist
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.
rootusrootus
That's a good reminder I need to go track down my roborock, it got stuck somewhere again. There's a map thankfully which helps me figure out where to look.
dpc_01234
Did your Roombas also yelled in the middle of the night "PLEASE CHARGE ROOMBA!!!" every few minutes with no way to disable that behavior?
I now have 2x $150 iLifes and couldn't be happier. They're also imperfect, but they are affordable and simple.
like_any_other
> better chinese competitors.
From the article: Under a trade regime overseen by men like Furman, the company offshored production, thus teaching its future rivals in China how to make robot cleaners.
goodolddays9090
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ghaff
Roombas just weren't that useful for most house layouts and situations (cords/toys/clutter/etc.) I seriously considered getting one and decided it just wouldn't be a win.
echelon
Roombas have always been terrible.
I bought a top-of-line Dreame, Roborock, and Eufy recently for our place - we have lots of pets.
The Dreame is easily 10,000x better than Roomba ever was. It never makes mistakes. I'd advocate for Dreame for anyone in the market for a robot vacuum. The app is annoying, but everything else about it is sublime.
Eufy would be better if they'd fix their roller brush design and didn't lean so heavily into making you buy their replacement components. It's designed around buying Eufy refills. The Anker team nails user friendliness and design, though.
amadeuspagel
"Wall Street" is one entity, which first ruined the Roomba, then wanted to buy it, then blamed Lina Khan for not being allowed to buy it. Makes sense.
margalabargala
It is a single entity that contains multitudes. Some of those multitudes have contradictory intentions.
Just like you. When it happens to a person we call it "cancer".
ToValueFunfetti
Typically we don't say that someone with cancer is slowly committing suicide. Technically correct, perhaps, but it needlessly applies central autonomy where it doesn't really exist.
BeetleB
Article mentioning Lina Khan on HN? You're going to see a lot of nasty comments.
xnx
Roomba screwed up for sure, but they found a way out with Amazon until US consumer "protection" shut it down.
BeetleB
"The FTC didn’t bring a challenge, but nevertheless, in 2024, Amazon and iRobot called off the deal."
How did they shut it down?
xnx
"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...
amanaplanacanal
IRobot says it was the EU which killed the deal: https://media.irobot.com/2024-01-29-Amazon-and-iRobot-agree-...
acdha
In other words, they didn’t shut it down.
shkkmo
A routine request for information is not shutting down a merger and presenting it as such is not good faith communication.
goodolddays9090
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Animats
It's interesting that Rod Brooks has been erased from the history of Roomba. He's not even mentioned in the Wikipedia article.
JKCalhoun
I see him (Rodney) in both the Roomba and iRobot articles.
tekacs
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 founders, accusing one of its founders and iRobot Chairman Colin Angle of engaging in “egregious and abusive use of shareholder capital” for investing in research.
Yes Roomba sucks at this point. We get it. Thing is, if you slash research... that's what eventually becomes of your product.
JumpCrisscross
> Thing is, if you slash research
And if you dump your defence contracts you may have trouble paying for research.
goodolddays9090
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ChrisArchitect
Related:
Roomba maker goes bankrupt, Chinese owner emerges
km144
> “In my trips to Wall Street,” Dyer told the panel, “one of my analyst friends took me to lunch one day and said, ‘Joe, you have to get iRobot out of the defense business. It’s killing your stock price.’ And I countered by saying ‘Well, what about the importance of DARPA and leading-edge technology? What about the stability that sometimes comes from the defense industry? What about patriotism?’ And his response was, ‘Joe, what is it about capitalism you don’t understand?’”
I find this article a pretty compelling critique of the extractive incentives of Wall Street and a good argument for government stepping in from time to time to adjust those incentives. Where is the societal good in the engine of capitalism prioritizing short-term extraction over long-term value creation?
twoodfin
What is the current AI/data center mega-boom if not forgoing short-term extraction for long-term value creation?
randerson
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.)
twoodfin
The stocks are inflated because Wall Street believes current $$$$$ capital investments will create massive long-term value!!
echelon
This 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.
caesil
Why not let Amazon take a stab at turning things around, then? It's better that they fail? I don't get it.
BeetleB
> Why not let Amazon take a stab at turning things around, then?
The point the article is making is that iRobot's bad decisions are the reason the company was failing. Blaming regulators for a poor acquisition outcome may be fair, but they were a very minor part of the outcome.
KerrAvon
couple things
- tbh, I think the Amazon deal doesn't matter much in the long run. The damage had been done earlier.
- why give Bezos any more free money? He's already rich enough.
adamsb6
They'll just hire the engineers they need out of the failed iRobot and not compensate the investors / founders for building something worth acqui-hiring.
The existing Roomba revenue stream probably doesn't matter. The expertise or maybe the brand (not a great brand imho) aligns with some company priority.
dcgudeman
Free money? I honestly don't understand comments like this. It's as if you aren't even trying to make sense. Amazon would have been bailing out Roomba so if anything this would have cost Bezos money.
monero-xmr
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
7thaccount
Possibly an unintended consequence. Those abound in our governing systems as you're rightfully complaining about.
On the other hand, competition is good for consumers and letting Microsoft and Amazon use unfair tactics to crush the competition or their large revenues to just buy up all competition isn't good either. That is part of the problem today in that practically every industry is a monopoly or near total monopoly (maybe there are 2-3 firms colluding). There are no incentives to innovate or keep prices competitive in such a gilded-age system. There was a reason we broke up all the robber barons. There is also the hazard when you have businesses that are so large that they effectively control everything and the government can no longer regulate them. High inflation is at least partly coming from this lack of competition. There is also the issue of the money supply where we degrade our currency to make it easier to service the debt. That is also a really big component here.
null
bryanlarsen
At the time the former was a known bad, and the latter was a potential bad.
The FTC properly weighted known bads more highly than potential bads.
NietzscheanNull
Did you read the article? Amazon wasn't "prevented" from acquiring, they decided against proceeding:
> The FTC didn’t bring a challenge, but nevertheless, in 2024, Amazon and iRobot called off the deal.
adamsb6
Khan had already accused them of abusing monopoly power and filed a lawsuit against them, and had a history of blocking acquisitions. At this time she also had a lawsuit in place seeking to undo the nearly decade old acquisitions of Instagram and Whatsapp.
The smart thing to do in that environment isn't to push the issue so that years later someone can't write that there wasn't an official challenge. It's to read the room and abandon the deal.
contagiousflow
Couldn't you just blame any business non-decision on fear of regulation?
"We were prevented from building a proper Windows phone because we already had such large market share on desktop, and already had an anti-trust against us so our hands were tied"
It's just an argument that creates a Kafka trap
csb6
Not sure how you could construe U.S. anti-trust actions as socialist. They prevented Amazon from acquiring iRobot. That is government intervention in the free market, but that is not the same thing as socialism. In fact you could argue a socialist administration would have wanted the merger (large firms tend to make labor organizing more tractable since there is only one employer to negotiate with).
_DeadFred_
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.
2OEH8eoCRo0
Outstanding article. Our current goals and incentives are not sustainable.
lotsofpulp
I don’t see evidence that iRobot vacuums would have been competitive with Chinese ones, simply because the moat does not exist (there is no secret sauce that makes it difficult to make a competing product).
As for the rest of the article, it’s not Wall Street’s fault the government doesn’t pay iRobot enough for research (nor should it).
2OEH8eoCRo0
As the article states they were more than vacuums- they also did defense work and research. They gutted that for higher short term gains. Offshoring to China also likely helped China learn to build their own.
lotsofpulp
If they were getting paid enough for defense work and research, then they would not have gutted it. But the government should do R&D itself anyway.
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.