Marvell Technology’s stock rose sharply on Wednesday after the company said it gave Google a warrant to buy up to 59 million shares. This deal could give Google a $12.2 billion stake in Marvell.
According to a regulatory filing on Wednesday, Marvell said it gave Google the warrant on Tuesday. This allows Google to buy up to 58.97 million shares at $206.58 each, which is worth about $12.19 billion.
Marvell’s stock went up 11% on Wednesday, recovering after dropping almost 8% the day before. Meanwhile, Broadcom, which has been seen as Google’s main chip partner, fell about 2%.
The warrant is part of a larger business deal between Marvell and Google that focuses on developing custom chips for Google.
