Axon shares fall 9.5% after hours; Skydio stake to 37%
Shares fell 9.5% after hours. Axon will invest about $1.2 billion in Skydio, raising its fully diluted stake to about 37% from about 15%, and become its exclusive U.S. and Canada public safety distributor.
Key takeaways
- Axon (AXON) shares fell 9.5% after hours. Axon will invest approximately $1.2 billion in drone maker Skydio, raising its ownership to about 37% on a fully diluted basis. Axon will also become Skydio's exclusive public safety distributor in the U.S. and Canada.
Axon (AXON) will invest about $1.2 billion in Skydio, the San Mateo, California drone maker founded in 2014 with more than 1,500 public safety customers, lifting its fully diluted ownership to about 37% from about 15%.
Shares fell 9.5% after hours at 6:01 p.m. ET, from a $385.49 close.
About 60%, or about $720 million, is cash. The rest is Axon common stock, with stock value capped at 19.99% of Axon's shares outstanding before the primary closing. Any amount above the cap is paid in cash.
The initial closing was Nov. 5, 2026, under a Series G preferred stock purchase agreement. It bought 25,000,000 non-voting Series G shares at $10.19617 per share, about $254.9 million, at a $5.2 billion pre-money valuation.
Within ten business days of the primary closing, Axon will launch a tender offer for up to 68,451,508 more Series G shares at the same price, settling in the fourth quarter of 2026. Axon then will buy 1,548,492 Series G shares from certain Skydio stockholders, all in cash, expected in the first quarter of 2027. The target across all transactions is 120,000,000 Series G shares.
Axon will become Skydio's exclusive public safety distributor in the U.S. and Canada. Axon estimates its drone first responder program's total addressable market at about $13 billion in the U.S. and Canada alone. Skydio expects about $1 billion in total bookings in its current fiscal year.