Marvell Technology (MRVL) announced an all-stock deal to acquire photonics company Lumentum (LITE) at a $115 billion enterprise value, including debt. Nvidia's Jensen Wong endorsed the deal, but most analysts were skeptical, questioning the timing amid problems in the chip sector and the financing. Analysts noted both stocks have traded volatilely over the past month, which makes using shares as currency risky when closing could take a long time. Some argue Lumentum's management is admitting it may not be well positioned to execute alone over the next two to three years, while Marvell must show what its stock is worth as currency. Market reaction to the deal has been largely negative.
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