Marvell Technology falls after reportedly entering advanced talks to buy Lumentum
MRVL•Marvell Technology shares fell 9.5% premarket after the company was reportedly in advanced talks to buy Lumentum Holdings, with a deal potentially set to be announced as soon as next week. Lumentum shares rose 4.8%.
1. Shares move on talks
Marvell Technology shares fell 9.5% premarket after it was reportedly in advanced talks to buy data-center optics maker Lumentum Holdings. A deal could be announced as soon as next week, a source familiar with the matter said. Lumentum shares rose 4.8% following news of the discussions.
2. Strategic rationale
Piper Sandler said the deal would make strategic sense for Marvell, citing the growing importance of optical networking in AI to speed data transfers and reduce power consumption. Marvell and Lumentum did not immediately respond to requests for comment.
