#mergers

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.

DoorDash agreed on October 29 to acquire Instacart's parent, Maplebear, for $65 a share in cash and stock, about $17 billion. CNBC reports the price is an 11% premium to Instacart's October 28 close and about 26% above its October 22 close, before reports of a possible sale surfaced. The companies expect the deal to close at the end of 2027 or early 2028; DoorDash plans to keep Instacart's brand, app and enterprise technology products, and the two will operate separately until then.

DoorDash also reported third-quarter revenue of $4.62 billion and adjusted earnings of $1.06 a share, both above estimates, with orders up 28% to 993 million. DoorDash shares rose more than 6% in morning trading, while Instacart traded near flat. CNBC notes Instacart agreed in December to pay $60 million to settle FTC allegations about its advertising.

SpaceX (Nasdaq: SPCX) reported third-quarter revenue of $14.6 billion, up 161% from $5.6 billion a year earlier, with net income of $4.4 billion against a $1.1 billion loss, according to its earnings release on October 20.

CNBC reports that the AI unit, which SpaceX calls "Super Intelligence," is now its largest business: revenue rose about ninefold to $7.56 billion, helped by renting computing capacity to Google, Anthropic and others and by the Cursor acquisition. Starlink subscribers reached 13.6 million, and the launch business grew only slightly, to $1.77 billion. CFO Bret Johnsen guided first-quarter 2027 revenue to $33 billion to $37 billion, far above the roughly $22 billion analysts expected, per LSEG.

On the call, Elon Musk said a merger with Tesla would be a "good idea" and that both boards have formed special committees to discuss it. The shares climbed about 8% in extended trading after the release, CNBC reports.