THE BOTTOM LINE
This is such a bad time for a US$115 billion tech deal
Marvell’s acquisition of Lumentum comes as investors are jittery over AI capital spending
TIMING is everything when you’re trying to pull off a mega deal. And it’s hard to think of a worse moment for semiconductor designer Marvell Technology to unveil a takeover of laser specialist Lumentum at a US$115 billion enterprise value.
After a month in which the market has become increasingly jittery about the economics of artificial intelligence, this attempt at one of the largest tech industry takeovers has gone down terribly.
Evidently, now is not a great time to be doubling down on data centre kit.
