business
Lumentum CEO Calls Marvell Deal an Enormous Opportunity in AI Connectivity
Marvell's planned acquisition of Lumentum draws an upbeat response from Lumentum's CEO, though both stocks slid sharply on Monday.
Key points
- Marvell's takeover of Lumentum implies an enterprise value of $115 billion for Lumentum, according to the companies.
- Marvell shares slumped 13% and Lumentum's stock sank nearly 19% in trading on Monday.
- The deal is expected to close during the first half of 2028.
Why it matters. The value of the fixed-ratio, no-cash deal will depend on Marvell's share price, so the terms could shift as the stocks move before closing.
Marvell Technology agreed to buy optical components maker Lumentum in a fixed-ratio, all-stock deal that the companies say implies an enterprise value of $115 billion for Lumentum. Lumentum CEO Michael Hurlston told CNBC on Monday the deal is an "enormous" opportunity in AI connectivity. Marvell shares fell 13% and Lumentum's stock sank nearly 19% in trading that day, after both had been major winners in the AI boom.
Latest updates
Lumentum CEO Calls Marvell Deal an Enormous Opportunity in AI Connectivity
Lumentum chief executive Michael Hurlston told CNBC on Monday, November 2, 2026, that Marvell Technology's acquisition of the optical components maker creates an enormous opportunity. He said the deal responds to growing connectivity demands from the artificial intelligence infrastructure buildout. Marvell chief executive Matt Murphy said that scale-up technology requires semiconductors and optical components to work together seamlessly. The transaction is expected to close during the first half of 2028. The companies' comments were made in interviews and have not been accompanied by new financial figures.