Marvell Agrees to Buy Lumentum in a $115 Billion All Stock Deal, Betting on Optical Parts That Connect AI Data Centers
BREAKING: Breaking: Marvell $MRVL agrees to buy Lumentum $LITE in a $115 billion deal It would be one of the biggest chip deals ever, as Marvell bets on optical components that connect AI data centers.
Context
It is one of the largest tech deals ever and shows that moving data between AI chips, not just the chips themselves, is now a central battleground.
Lumentum makes lasers, optical transceivers and optical circuit switches used to link servers in AI data centers. Marvell designs custom AI chips and electrical and optical interconnects, and competes with Broadcom. Nvidia invested $2 billion in each company earlier in 2026, according to CNBC.
Deep dive
Unusual Whales (@unusual_whales) posted on Nov 2 that Marvell agreed to buy Lumentum in a $115 billion deal, calling it one of the biggest chip deals ever and a bet on optical components that connect AI data centers.
Marvell's own press release confirms the deal. Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share, an implied enterprise value of $115 billion for Lumentum, or about $1,132 per share. Marvell says that is a premium of about 23.9% to the closing prices on Oct. 28, the last trading day before market speculation began. After closing, Marvell shareholders will own about 67% of the combined company and Lumentum shareholders about 33%. Matt Murphy stays chairman and CEO, and three Lumentum directors, including CEO Michael Hurlston, join Marvell's board.
Marvell argues that combining its electrical and optical interconnect, switching and custom chip work with Lumentum's lasers and optical modules will let it design connectivity end to end. It says the combined company targets a $550 billion market and sees more than $1 billion in annual cost savings. CNBC frames the deal as Marvell stepping up its challenge to Broadcom, while Bloomberg, the Financial Times and The Wall Street Journal also reported it. Axios' Dan Primack suggested it could be the largest tech merger ever, excluding related party deals.
The companies expect the deal to close in the first half of 2028, subject to shareholder and regulatory approvals, and analysts have flagged China's review as a possible hurdle.
What to expect next
The long timeline means regulators in the US, Europe and especially China will have plenty of time to weigh in, and any condition could reshape the deal. Watch how Broadcom, Coherent and other optics suppliers respond, and whether Nvidia's stakes in both companies draw scrutiny. Shareholder votes and early integration plans will show whether investors buy the end to end design pitch.