Serenity says Marvell-Lumentum deal is strategically positive but fixed swap ratio caps LITE pricing

The story so far: Marvell acquisition of Lumentum

Marvell Technology agreed to buy Lumentum in an all-stock deal valued at about $115bn, a bet on AI data centres. Nvidia CEO Jensen Huang backed the roughly $103bn merger before it was announced, after the two CEOs sought his view; Nvidia invested $2bn in each firm earlier this year.

1. 29 Oct 202600:07 UTC

   Marvell said to be in advanced talks to buy Lumentum

   Marvell Technology is in advanced talks to acquire optical communications equipment maker Lumentum, with a deal possibly announced as early as next week, people familiar with the matter said. Marvell shares fell more than 10% after hours while Lumentum rose as much as 15%.

   AIOdailyAINeutral

2. 2 Nov 202612:07 UTC

   Marvell to buy Lumentum in all-stock deal valued at about $115bn

   Marvell's all-stock acquisition of Lumentum implies an enterprise value of about $115bn, or roughly $1,132 a share, a premium of about 23.9% to the pair's unaffected closing prices on 28 Oct. The companies said the merger combines Marvell's electrical and optical interconnect, switching and custom chip work with Lumentum's lasers, optical transceivers and optical circuit switching.

   AIChainCatcherAINeutral

3. 2 Nov 202612:33 UTC

   Lumentum briefly gains 4.2% as pre-market trading resumes before turning lower

   Binance market data showed Lumentum (LITE.O) briefly up 4.2% after pre-market trading resumed, before its shares turned negative. Marvell Technology (MRVL.O) is set to acquire Lumentum in a $115bn all-stock deal aimed at the AI data centre sector.

   AIPANewsAINeutral

4. 2 Nov 202613:09 UTC

   Lumentum turns lower premarket, falling 3.6% on Marvell takeover deal

   Lumentum turned lower in premarket trading, falling as much as 3.6% to $819.36, as Marvell Technology agreed to buy it in an all-stock deal valued at $115bn, a bet on AI data centres.

   AIOdailyAINeutral

5. 2 Nov 202613:26 UTC

   Lumentum falls 5.5% premarket as Marvell drops 3.3%

   Lumentum's premarket decline widened to 5.5% and Marvell Technology fell 3.3%, according to MSX.COM data. Their merger agreement sets termination fees of up to $5.8bn payable by Marvell in some cases, including $3.2bn in certain scenarios, and $2.9bn payable by Lumentum if it ends the deal.

   MacroOdailyAINeutral

6. 3 Nov 202600:15 UTC

   Serenity says Marvell-Lumentum deal is strategically positive but fixed swap ratio caps LITE pricing

   Serenity said Marvell's acquisition of Lumentum is strategically positive, but the fixed ratio of 4.5 Marvell shares per Lumentum share limits independent price discovery for LITE. Lumentum closed down 18.59% and Marvell down 12.72%.

   MacroOdailyAINeutral

7. 3 Nov 202604:21 UTC

   Nvidia's Jensen Huang said to back Marvell-Lumentum $103bn merger

   People familiar with the matter say Nvidia CEO Jensen Huang backed Marvell and Lumentum's roughly $103bn merger before it was announced, after the two CEOs sought his view. Nvidia invested $2bn in each firm earlier this year.

   AIOdailyAINeutral