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Amazon obtains right to buy up to $340M of Generac, boosting stock
CNBC • • business
Key Points:
- Amazon received warrants to purchase up to $340 million in Generac stock, causing Generac shares to jump over 40% in extended trading.
- Generac issued warrants allowing Amazon to acquire up to 1.69 million shares at $200.93 each, potentially valuing the investment at $8 billion.
- Generac will provide backup power generators to Amazon's data centers, with initial deliveries expected to total $2.4 billion in 2027 and 2028.
- About 308,000 warrant shares vested immediately, with the remainder contingent on generator payments; these warrants represent nearly 3% of Generac's outstanding shares.
- This deal follows Amazon's recent infrastructure investments, including a partnership with Qualcomm for AI chips and significant cloud infrastructure expansions to support AI demand.
