Apple Set to Report; Marvell-Lumentum Mega Deal; EchoStar-SpaceX

0:02 Bloomberg Audio Studios, podcasts, radio, news. The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.

0:15 Let's take a look at some of the stocks on the move. You can do that today with John Tucker. John, what are you looking at? All right, deal news, deal news.

0:23 And a big deal at that.

0:25 Merger Monday, well, it's not exactly the definition of a merger. Marvel Technology reaching a deal to buy data center optics maker Lumentum Holdings. The enterprise value, $ 115 billion. Oh, is that all?

0:39 Okay.

0:40 All stock transaction. Shareholders of Marvel, 67% of the combined company they'll get. Lumentum makes lasers and other optical equipment and you need lasers and other optical equipment to in the digital age to send stuff.

0:58 And for me, the most important thing, yet again, is Catalyst Partners is serving as the lead financial advisor to Marvel.

1:04 That's, of course, his focus.

1:06 And I'll tell you why. People say, who's Catalyst Partners? Well, Catalyst Partners is a banker by the name of Frank Quattrone. He's built a huge team out there on the West Coast. Frank was the leading tech and banker starting in the 80s, the 90s, And today, it's just a short 71 years old. I worked for him back in the day at Credit Suisse, first Boston guy. He's owned Silicon Valley. No, let's put it this way. He's advised the creation of Silicon Valley for 40 years now, been the lead banker. And he pops up on all the big, big deals. And he's got Goldman Sachs and JPMorgan Chase carrying his luggage on that deal. On the other side of it, it's Citigroup and Evercore. So there you go.

1:44 But look at this, Lumentum's down 4%. Stock had been up 128% ahead of this deal. I mean, I don't know if they think that this is not a big enough premium.

1:54 It's not the first. Marvel has already purchased laser technology from Lumentum. And they've been increasing their bets on optical and photonic technology. for connecting the data center gear. You'll recall earlier this year, they purchased photonics maker Celestial AI. NVIDIA announced an agreement to take $ 2 billion stake in Lumentum in March. This was part of the deal that included the collaboration on photonics. And then the next one, well, SpaceX, as we know, they made no secret of their ambitions to build a fourth major cellular network in the U.S.

2:31 to build a national carrier. They need... A cellular network?

2:35 I think so.

2:36 Echo Star shares rising. The Washington Post reports SpaceX has held talks about launching its own signature wireless service with the parent company of Boost Mobile.

2:46 Oh, they're behind Boost.

2:47 Yeah, exactly.

2:48 What they are, this is Charlie Ergen. This is Dish TV.

2:51 Right.

2:51 The old Dish TV. This is the old satellite company where they take us down to French Guiana back in the day to watch satellites take off.

2:58 Did they?

2:59 French Guiana?

2:59 Yeah, back in like the... Late, early 90s, back when it was important to see commercial satellites go off.

3:05 Are you dating yourself? I don't know, Paul.

3:07 Yes.

3:07 But the proposed service would need consent from Boost Network providers, AT & T and T-Mobile, for the service to actually launch. So a possible deal could result in SpaceX buying Boost Mobile or Elon Musk getting access to its network. This is a market opportunity estimated at right around $ 235 billion.

3:29 The Washington Post article this morning suggests that Musk had approached all three major telecom providers, Verizon, AT & T, and T-Mobile. But they all rejected him.

3:42 And their stocks are all lower in pre-market at the moment.

3:44 Yeah.

3:45 At present, SpaceX Satellite Network doesn't have the low-spectrum coverage to make this happen. So that's what they need at this point.

3:52 All right.

3:53 One more.

3:53 Okay. Last one.

3:54 Apple, of course, after the close of regular trading today, they're going to open their books to investors. Wall Street expecting fiscal fourth quarter revenue to rise 11%. And net income to increase 6%. While that would cap Apple's best year for sales growth since 2021, the expansion expected to slow in the next two years. So the run-up in Apple's shares and recent months, that's left the iPhone maker not much room for any mistakes.

4:23 They've had an incredible second half of the year. The stock's up like 25% since June.

4:27 Yep.

4:28 It's once again the most valuable company, above $ 5 trillion.

4:31 Apple is.

4:32 Yeah.

4:33 So the stock also trading at the priciest levels since 2008. 36 times earnings expected over the next 12 months for Apple.

4:43 The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.