Overview
- Marvell issued the warrant on Aug. 18 that gives Google the right to buy up to 58,970,907 shares at an exercise price of $206.58 per share.
- Only about 1.36 million shares vest on a time schedule and the remaining roughly 57.6 million shares vest in 240 tranches, with each tranche tied to $500 million of qualifying Marvell revenue between Marvell’s Q3 fiscal 2027 and the end of fiscal 2033.
- The market reacted quickly with Marvell shares rising and Broadcom shares easing, and multiple Wall Street firms reiterated Buy or Outperform ratings and raised targets after the disclosure.
- The $12.2 billion exercise figure and the deal’s implication of up to $120 billion in cumulative revenue are conditional caps that depend on Google meeting multi-year purchase milestones and do not represent guaranteed cash or sales.
- The agreement expands Marvell’s role inside Google’s TPU ecosystem for AI inference, storage, networking and near‑memory compute, follows a prior revenue‑linked warrant with AWS, and reflects a broader industry trend of hyperscalers using revenue‑linked warrants to align supplier incentives and visibility.