In one of the largest deals in tech history, Marvell buys Lumentum for $115B
News Source
β’Mon, 02 Nov 2026 17:54:11 +0000
π° What Happened
Chip designer Marvell has agreed to buy Lumentum, which makes optical chips and networking gear, for about 115 billion dollars. The deal is all in stock. Marvell will give 4.5 of its own shares for each Lumentum share.
The companies put the value at 115 billion dollars including debt, or about 80 billion dollars in shares. That makes it one of the biggest tech deals ever. Microsoft's purchase of Activision Blizzard, at 68.7 billion dollars, was smaller.
The deal should close in the first half of 2028, if shareholders and regulators agree.
π The Backstory
Lumentum makes lasers and optical parts that move data between computer chips using light. AI data centres need huge amounts of this gear because light carries data faster and with less power than copper wires.
Nvidia, the biggest AI chip company, owns stakes in both firms. It put 2 billion dollars into Lumentum and 2 billion into Marvell earlier this year. Marvell says the combined company will lead in AI connections, from chips to data centres.
π― Why It Matters
The AI boom is driving huge mergers in the parts that connect servers. That spending eventually shapes the price and speed of the AI tools people use.
Chip designer Marvell has agreed to buy Lumentum, which makes optical chips and networking gear, for about 115 billion dollars. The deal is all in stock. Marvell will give 4.5 of its own shares for each Lumentum share.
The companies put the value at 115 billion dollars including debt, or about 80 billion dollars in shares. That makes it one of the biggest tech deals ever. Microsoft's purchase of Activision Blizzard, at 68.7 billion dollars, was smaller.
The deal should close in the first half of 2028, if shareholders and regulators agree.
Lumentum makes lasers and optical parts that move data between computer chips using light. AI data centres need huge amounts of this gear because light carries data faster and with less power than copper wires.
Nvidia, the biggest AI chip company, owns stakes in both firms. It put 2 billion dollars into Lumentum and 2 billion into Marvell earlier this year. Marvell says the combined company will lead in AI connections, from chips to data centres.
The AI boom is driving huge mergers in the parts that connect servers. That spending eventually shapes the price and speed of the AI tools people use.