Amazon Deal Saved Zoox Robotaxi From Liquidation, Court Told

Robotaxi startup Zoox Inc. was on the cusp of liquidation when Amazon.com Inc. made the only merger offer that included common stockholders, an attorney representing the companies told the Delaware Chancery Court on Thursday.

Amazon’s $1.3 billion acquisition in 2020 followed two years where Zoox burned through money and incurred debt to continue operations, said William Savitt of Wachtell Lipton.

The company, founded in 2014, remains at the prototype stage. Former Zoox investors allege its senior leaders sought personal benefits from a sale instead of maximizing value for common shareholders.

“It was do something, or circle the drain,” Savitt said. ...