Amazon Snags Generac Warrants Worth Up to $340M Amid Data Center Deal

Amazon has secured an agreement to supply backup generators to its data centers from Generac, a leading manufacturer of such equipment. As part of this deal, Amazon will receive warrants to purchase up to $340 million worth of Generac shares. This equates to nearly 3% of the company's outstanding shares.

The total potential value of this investment could reach a staggering $8 billion, based on the current market price per share of $200.93. The agreement involves initial deliveries in 2027 and 2028 totaling $2.4 billion, which will undoubtedly boost Generac's revenue.