🚨 Marvell Just Agreed to Buy Lumentum for $115 Billion in Stock
Marvell will buy laser maker Lumentum in an all-stock deal at a $115 billion enterprise value, expected to close in the first half of 2028.
Marvell has agreed to buy Lumentum in an all-stock deal that values the laser maker at $115 billion, the two companies announced this morning, with the release timed at 7:05am New York, or 12:05 in London.
Lumentum holders get 4.5 Marvell shares for each share they own, worth about $1,132 apiece. That is a 23.9% premium to the October 28 close, the last day before word of the talks got out.
Dealmaking reporter Dan Primack said on X it looks like the largest tech merger ever, unless you count the related-party SpaceX and xAI tie-up. That is his read, and we have not independently confirmed the record.
⚡ What Happened
- Ownership: Marvell holders keep about 67% of the combined company. Lumentum holders get about 33%.
- Leadership: Matt Murphy stays on as chairman and CEO. Three Lumentum directors, including CEO Michael Hurlston, join Marvell’s board.
- The pitch: more than $1 billion in annual cost savings, a $550 billion addressable market, and a boost to Marvell’s adjusted earnings per share in year one.
- Timing: closing is expected in the first half of 2028, pending stockholder and regulatory approvals.
🧠 Why It Matters
AI data centers have a wiring problem. Copper struggles as bandwidth climbs, so the industry is moving to light, and Lumentum makes the lasers and optical transceivers that do that job. Marvell brings the chips, switches and custom AI silicon.
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation.” — Matt Murphy, Marvell chairman and CEO
Reuters framed the deal as Marvell’s attempt to rival Broadcom. Nvidia has a seat at this table too: it put $2 billion into Lumentum in March, then $2 billion into Marvell weeks later.
🔜 What To Watch
Marvell’s share price. The exchange ratio is fixed, so the value of this deal moves with Marvell’s stock. When talks leaked, Marvell fell 11% in premarket trading and Morningstar called the price rich.
Customers. Lumentum buys Marvell’s PAM-4 chips, and Stifel warned before the deal that rival module makers could switch suppliers, putting Marvell’s 60%-65% share at risk.
A long wait. You are looking at well over a year before this closes, and plenty of AI hardware will change in that time.
Market reaction to the signed deal is still emerging.
Sources
- Marvell press release: Marvell and Lumentum to Combine
- Stocktitan: copy of the release with timestamp
- Reuters: Marvell to buy Lumentum in $115 billion deal
- Techmeme: coverage roundup
- The Register: Nvidia’s $4 billion photonics investment
- Tom’s Hardware: Nvidia invests $2 billion in Marvell
- Seeking Alpha via TradingView: analysts on the proposed deal
❓ Quick answers
How much is Marvell paying for Lumentum?
The all-stock deal announced on November 2, 2026 has an implied enterprise value of $115 billion, or about $1,132 per Lumentum share, according to Marvell's press release.
What do Lumentum shareholders get in the Marvell deal?
They receive a fixed 4.5 Marvell shares per Lumentum share, a premium of about 23.9% to the October 28, 2026 close, and will own about 33% of the combined company, per the companies.
When will the Marvell Lumentum deal close?
The companies expect closing in the first half of calendar 2028, subject to stockholder and regulatory approvals, according to the November 2, 2026 announcement.
