Brew Markets Roomba Hits the Dustbin & Will Spinning Off Cable Nets Reignite Comcast?
Dec 15, 2025
The decline of iRobot’s Roomba raises questions about the health of public companies facing financial strain. Comcast’s strategy to spin off its cable networks into a new entity, Versant, aims to rejuvenate the legacy media giant. Meanwhile, Procter & Gamble’s stock remains stagnant despite strong earnings, prompting analysis of its restructuring efforts and market challenges. Additionally, both Zillow and ServiceNow face notable stock declines, with ServiceNow's potential acquisition stirring investor reactions.
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Bankruptcies Reveal A K-Shaped Corporate Recovery
- Public-company bankruptcies signal a corporate K-shaped recovery with winners and wipeouts.
- iRobot's Chapter 11 shows high valuations don't protect firms from cash burns and competition.
Amazon Deal Fallout Worsened iRobot's Fate
- Amazon's failed $1.7 billion bid for iRobot left the company worse off despite a $94 million break fee.
- iRobot burned cash after the deal collapse and now faces a pre-packaged bankruptcy with Chinese partner ownership.
High Markets, Rising Bankruptcies Can Coexist
- High market valuations coexist with rising bankruptcies among public companies with weak balance sheets.
- Rising costs of capital, supply shocks, and narrow investor interest (e.g., AI) strain non-winning firms.