Amazon Granted Warrants to Purchase Generac Stock Worth Up to $8 Billion
Amazon has been granted warrants allowing it to purchase up to $340 million worth of Generac stock, which could increase its stake in the backup power provider by nearly 3%. This deal is part of a larger agreement where Generac will supply Amazon with backup generators for data centers. The initial deliveries are expected to total $2.4 billion over two years starting from 2027. The announcement led to an immediate surge, pushing Generac's share price up by more than 40% in extended trading on Wednesday. As of the previous close, Generac had a market cap of approximately $10.3 billion. The warrants include vesting conditions tied to payments for generator deliveries under the agreement. This partnership highlights Amazon’s growing reliance on robust infrastructure solutions and signals strong demand from one of the world's largest tech companies.
Topics: Amazon Data Center Supply Chain Generac Warrant Agreement