Big bet on AI "copper-to-optics"! Marvell (MRVL.US) to acquire Lumentum (LITE.US) for $115 billion, but why did the market cast a vote against it first with a sharp selloff?

Zhitong Finance APP has learned that at a critical juncture when AI infrastructure is accelerating its shift from copper interconnects to optical interconnects, Marvell Technology (MRVL.US) has chosen to make a bold bet. Before the U.S. market opened on November 2, Marvell Technology and optical component manufacturer Lumentum (LITE.US) announced that they had reached a formal agreement under which Marvell Technology will acquire Lumentum in an all-stock transaction. According to reports, the total value of the deal, including debt, is approximately $115 billion, with an equity value of about $102.5 billion, making it one of the largest mergers and acquisitions in the history of the technology industry and more than ten times Marvell Technology's previous largest acquisitionthe $10 billion acquisition of network chip company Inphi in 2021.