MRVL is up 10% pre-market! Feels like it's flying! Marvell signed a custom chip agreement with Google to develop a series of custom semiconductor products for the TPU ecosystem. As part of the deal, Marvell issued warrants to Google. GOOGL can purchase up to approximately 58.97 million shares (about 6% of total equity) of MRVL common stock at an exercise price of $206.58 per share, valued at $12.182 billion. Although there’s a potential risk of a 6% dilution, these discounted shares aren’t just handed out for free—they’re unlocked only when Google is satisfied with its purchases: for every $500 million worth of products Google buys from Marvell, one tranche of shares is unlocked, with a total of 240 tranches. This means real revenue comes to the company first before shares are unlocked, so profits can offset inflation. By accepting this arrangement, Google is also signaling to the market: "I’m going to be a big buyer for the long term." This partnership is expected to potentially bring $120 billion in revenue. The corresponding valuation could increase by over $200 billion, which would double the current market cap!