Marvell in Advanced Talks to Acquire Lumentum
Bloomberg reports Marvell ($MRVL) is in advanced talks to acquire optical networking company Lumentum ($LITE), with a deal potentially announced as early as next week. $LITE surged ~12% while $MRVL fell ~11% on the news.
What we know
$MRVL in advanced talks to buy $LITE in a deal that could be announced next week. At a ~$200B market cap for MRVL vs ~$80B for LITE, the acquisition would require heavy shareholder dilution, explaining the negative reaction in MRVL. However, with Jensen Huang having previously called for MRVL to reach a $1T market cap, the optics/networking rationale makes the target seem more realistic. Both companies operate in the optical interconnect/networking space critical for AI data center buildout. FedEx's data center-related business also grew 28% YoY in international freight, underscoring the broader AI infrastructure demand.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.