Marvell in advanced talks to acquire Lumentum, Bloomberg reports
No agreement has been reached, and the discussions could collapse. Marvell would likely use shares to pay for the acquisition.
Marvell Technology is negotiating a potential acquisition of optical components maker Lumentum, Bloomberg reported, citing people familiar with the discussions. The chipmaker would likely fund the purchase with shares, but the companies have not agreed on a transaction.
Bloomberg said the negotiations were advanced but could end without a deal, and it had not established the terms. The Information separately reported acquisition discussions, citing one person. Bloomberg said it could not reach either company for comment.
The reports were followed by divergent share moves. During Thursday trading in New York, Marvell dropped as much as 14%, while Lumentum gained as much as 7%, according to Bloomberg.
Marvell already purchases lasers from Lumentum, whose products transmit data between AI chips. Marvell also develops custom AI and networking chips, working with Amazon Web Services and Microsoft on their own AI processors.
Lumentum faces supply constraints. Chief executive Michael Hurlston said its optical components were sold out through early 2029, Bloomberg reported. Nvidia acquired a US$2 billion stake in Lumentum earlier this year through an arrangement that also included collaboration on photonics, according to Bloomberg.
