3M issues Amazon warrants tied to $6B data-center product spend; 3M shares rise 5% after hours
What happened
3M said it issued warrants allowing Amazon to buy up to 3.1 million 3M shares at $164.89 — slightly above Monday's $162.01 close — over seven years as part of a data-center products deal. The majority of the warrants vest only after Amazon spends $6 billion on 3M's optical connectors and other data-center products, effectively locking in Amazon as a large-scale customer of 3M's connectivity hardware. 3M shares rose more than 5% in after-hours trading. The deal would amount to less than 1% of 3M's outstanding shares, and Amazon has previously taken similar supplier warrants in Generac and Qualcomm.
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Who’s affected
- 3M (MMM): +5% after hours; validates its data-center/optical-connector franchise and locks in $6B of committed Amazon spend
- Amazon (AMZN): modestly positive; secures strategic supply of data-center connectivity hardware; already rose ~5% Monday on Morgan Stanley's top-pick call
- Optical-component/connectivity suppliers broadly: read-through that hyperscale data-center spend on interconnects remains strong
Sources