Why are Marvell and Lumentum share prices down over $115 billion acquisition?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Marvell and Lumentum share prices fell after Marvell announced a $115 billion all-stock acquisition.
- ✓Marvell shares dropped 9.08% while Lumentum shares fell 6.26% as investors worried about costs and debt.
- ✓The deal aims to boost Marvell’s AI data centre business, helping the company compete with Broadcom in the coming years.
Story at a Glance
- Category
- BUSINESS
- Reported By
- The Economic Times
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Synopsis
Marvell and Lumentum shares have dropped after Marvell announced that it will be acquiring Lumentum in a $115 billion all stock deal. Marvell will be able to expand its AI data centre and optical networking technologies after the acquisition. The acquisition will help Marvell compete with Broadcom successfully. The investors are now looking at the cost of the acquisition, debt, dilution and integration risks.
Marvell and Lumentum share prices are down after Marvell Technology agreed to buy optical components firm Lumentum Holdings in an all stock deal worth $115 billion. The deal will help Marvell to expand its AI data centre business and compete with Broadcom. Both the companies shares have fallen as questions have been raised about how much this deal will cost and how much it will affect current shareholders.
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The Economic Times
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