Marvell is reportedly in advanced talks to buy Lumentum
LITE•Marvell is reportedly in advanced talks to acquire Lumentum, which was valued at roughly $91 billion after its shares rose about 11% in extended trading. The deal could be announced as soon as next week, but the talks remain private.
1. Potential acquisition
Marvell Technology is in advanced discussions to buy Lumentum Holdings, Bloomberg News reported, citing people familiar with the matter. The report said a deal could be announced as soon as next week; the talks were still private, and neither company immediately responded to requests for comment.
2. Market reaction and financing
Lumentum shares rose about 11% in extended trading, valuing the company at roughly $91 billion, while Marvell shares fell more than 8%. Marvell had about $3.92 billion in cash and cash equivalents as of its latest quarter. Bernstein analysts said a deal of that size would likely be impossible to fund entirely with cash and could raise financing and integration questions.
3. AI and optical strategy
Lumentum makes optical components for communications networks and data centers. Marvell has benefited from demand for custom AI chips and networking products, and Bernstein analysts said the potential acquisition would further its push into optical technologies for AI infrastructure. Marvell previously announced a $3.25 billion acquisition of photonics firm Celestial AI and recently raised its fiscal 2028 revenue forecast to $20 billion from $15 billion.
