Marvell Plans $115 Billion Lumentum Deal as Both Stocks Fall

Can the biggest optical networking deal ever convince investors? Marvell Technology agreed to buy Lumentum in an all-stock transaction valued at $115 billion, and both stocks dropped sharply. Marvell closed at $170.80, down 13%, on volume of 60.5 million shares, far above its three-month average of 22.3 million. Shares moved sharply on the news.

Lumentum closed at $684.40, down 18.59%. Investors voiced worries about dilution, valuation and financing risk. Marvell chief executive Matt Murphy called the transaction a once-in-a-generation opportunity in optical connectivity for artificial intelligence, arguing that combining the companies would help meet surging demand from data centre builders. The deal still needs approvals.

Trading detail from market wraps indicates the exchange ratio is 4.5 Marvell shares for each Lumentum share, with closing expected in the first half of 2028. That long timeline leaves room for regulatory review and market swings. The reaction shows investors are demanding proof that giant AI-linked acquisitions will create value rather than simply add risk.