Marvell Technology shares fell 13.9% as of 2:44 p.m. ET on Thursday, October 29, after Bloomberg reported that the chipmaker is in advanced talks to acquire Lumentum, a maker of optical components for AI data centers. The report said an announcement could come as early as next week, though nothing has been finalized. Marvell has about $3.93 billion in cash and equivalents, and with Lumentum's $83 billion market cap, the deal is likely to be mostly stock, which would dilute existing shareholders. Marvell's optics acquisition last year was a smaller $3.5 billion deal that included $1 billion in cash. Meanwhile, Marvell's second-quarter revenue rose 37% to a record $2.74 billion.
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Marvell Technology (MRVL) shares fell 12% on Thursday after reports it was in advanced talks to acquire optical components maker Lumentum Holdings (LITE), whose shares rose over 4% in early trading. Citing people familiar with the matter, Bloomberg reported a deal could be announced as soon as next week, though no final agreement has been reached and talks could still fail. Lumentum is valued at about $83 billion versus Marvell's $221 billion; backed by Nvidia, Lumentum makes lasers and optical components that move large volumes of data across networks and data centres as AI infrastructure grows. Marvell had about $3.92 billion in cash and equivalents at the end of its latest quarter, so Bernstein analysts cited by Reuters said a deal of this scale would probably need additional financing and could present integration challenges. Neither company has publicly confirmed the talks.
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