Amazon obtains right to buy stock in Generac, boosting power company's share price by over 40%
Amazon was granted warrants to buy up to $340 million worth of Generac stock as part of a deal to supply backup power generators for its data centers.
TL;DR
- Amazon was granted warrants to purchase up to $340 million of Generac stock.
- Generac's shares surged over 40% following the announcement.
- Generac will supply backup power generators for Amazon's data centers.
- Initial deliveries for the generators are expected to total $2.4 billion in 2027 and 2028.
- The warrants represent nearly 3% of Generac's outstanding shares.
- This deal is part of Amazon's ongoing infrastructure investments, including previous agreements with Qualcomm and OpenAI.