Marvell in Advanced Talks for ~$83B Lumentum Buy; Shares Slide After Hours
MRVL has more than doubled off its 52-week low of $70.685.
Summary
Marvell is in advanced talks to buy data center optics maker Lumentum, with an announcement possible as soon as next week, per Bloomberg. The reported deal size is near $83B — enormous relative to Marvell, which holds under $4B in cash, so this would require heavy stock issuance or debt. Shares fell roughly 8–9% after hours on the report. This follows the Reuters report last night that talks were advanced; the new details are the price tag, the cash shortfall, and the market's negative reaction. The optics acquisition would deepen Marvell's AI data center exposure, but the financing risk and dilution are what traders are pricing.
At the time of this announcement, MRVL was trading at $230.50 on NASDAQ in the Technology sector, with a market capitalization of approximately $220.7B. The 52-week trading range was $70.69 to $329.88. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.