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Marvell to buy Lumentum in $115 billion deal in AI data-center bet
The all-stock deal would expand Marvell’s AI networking and photonics reach and could generate more than $1 billion in annual cost savings, the companies said.
- On Monday, Marvell Technology announced it is buying optical components maker Lumentum in a $115 billion all-stock deal, aiming to challenge rival Broadcom and capitalize on the AI spending boom.
- "Infrastructure is undergoing a fundamental architectural shift toward optical connectivity," said Marvell CEO Matt Murphy, who will remain chairman and CEO of the combined company. The deal expands the company's total addressable market to $550 billion.
- Big Tech's AI spending boom drives demand for optical components used to move data at high speeds. Reflecting this confidence, AI chip giant Nvidia invested $2 billion each in Marvell and Lumentum earlier this year.
- To challenge Broadcom, the deal integrates Lumentum into Marvell's portfolio. Since talks were reported late last month, Lumentum's shares have fallen about 8% and Marvell about 22%, as a broad-based chip selloff accelerated following Intel's weak forecast.
- Marvell expects the interconnect market to grow 65% a year to $65 billion by 2030, fueling long-term demand. The transaction, unanimously approved by both boards, is expected to close in the first half of calendar 2028.
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(Seoul = Yonhap News) Reporter Jung Joo-ho = U.S. semiconductor company Marvell Technology acquired optical component manufacturer Lumentum Holdings with an enterprise value of $115 billion (approximately 154.5 trillion...
·Seoul, Korea (the Republic of)
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Marvell, Lumentum merge in $115 billion deal amid AI spending jitters
U.S. chipmaker Marvell Technology said Monday it will buy optical components maker Lumentum in a $115 billion all-stock deal, the latest bid for scale among AI infrastructure companies as investors increasingly question whether the industry's spending boom will pay off.
·Douglas, United Kingdom
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Marvell, Lumentum merge in $115 bn deal amid AI spending jitters
·Issy-les-Moulineaux, France
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Coverage Details
Total News Sources80
Leaning Left6Leaning Right13Center18Last UpdatedBias Distribution49% Center
Bias Distribution
- 49% of the sources are Center
49% Center
L 16%
C 49%
R 35%
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