Google's Marvell Warrant Doesn't Fully Vest Until Google Buys $120 Billion of Chips
Yahoo Finance ·
Shares of chipmaker Marvell Technology ( MRVL +5.79% ) jumped about 10% Wednesday morning, as of this writing, after the company disclosed an expanded custom chip partnership with Google, the search giant owned by Alphabet ( GOOG -1.02% ) ( GOOGL -1.18% ) . Attached to the partnership is a warrant giving Google the right to buy 58,970,907 Marvell shares -- about $12.2 billion worth at the warrant's exercise price. The size of the award explains the pop. But to me, the more revealing part of the filing is the vesting schedule, which spells out exactly what Google has to do to earn those shares: buy chips. One installment of shares vests for every $500 million of revenue Marvell recognizes from Google and its affiliates for the custom products covered by the agreement. There are 240 installments in all. And 240 times $500 million is $120 billion.
DYAX Investor Sentiment
Bullish (Long) 53% · Bearish (Short) 47%
214 participants
Related News
- The Dividend ETF That Generates Passive Income While You Sleep
- Tesla Eyes Weekly Gain After Nevada Approves Up to 5,000 Robotaxis and Musk Defends Growth Outlook
- Will Stronger Operating Trends Amid Volatile Markets Change TC Energy's (TSX:TRP) Narrative?
- Is Bank Of America (BAC) Undervalued As Its August Bond Issuance Raises Fresh Questions?
- If a Bear Market Is Coming, This Is the Single Best Investing Decision You Can Make
- Fabrinet Sees AI Optical Demand Fueling Years of Growth, Expands Capacity
