Marvell agrees to buy Lumentum in an all-stock deal valued at $115 billion, and both stocks fall
Hear the two CEOs explain why chips and optical parts belong together in AI data centers, in one of the year's biggest AI deals.
Chipmaker Marvell Technology agreed on Monday, November 2, to buy optical components maker Lumentum in an all-stock deal. Lumentum shareholders will get 4.5 Marvell shares for each share they own; Marvell put the implied enterprise value at $115 billion, though the final value depends on Marvell's share price. The deal is expected to close in the first half of 2028.
Marvell CEO Matt Murphy told CNBC the combination will create 'a new category of company' by making semiconductors and optical connections work together for AI systems, which increasingly use light to link chips. Investors were not convinced on day one: Marvell fell 13% and Lumentum nearly 19%. CNBC notes both had been big AI winners, with Marvell more than doubling over the past year and Lumentum quadrupling before Monday.
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Silicon photonics
After exploring Marvell to buy Lumentum in all-stock deal, for the technology Marvell is paying for, try Silicon photonics.
Wikipedia explains silicon photonics as photonic systems that use silicon as the optical medium, patterned into tiny components that mostly work at the infrared wavelengths used in fiber-optic communication.
Wikipedia · Swim · 30 min
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