Marvell Technology, Inc. is in advanced talks to acquire Lumentum Holdings Inc., Bloomberg reported, but Lumentum’s $83 billion market value is not a disclosed offer price.
Bloomberg’s Oct. 28 report put Marvell’s market value at about $221 billion. The reports gave no purchase price, payment structure or expected synergies, and did not say whether the companies’ boards had approved a transaction.
Reuters separately cited a source familiar with the discussions and reported that neither company immediately responded to its requests for comment. Bloomberg’s sources said an announcement could come as soon as next week, without naming a specific date.
In March, the companies described a planned demonstration for AI data-center networks that would send data over optical paths directly between endpoints. They said this approach could reduce energy use and avoid some conversions between optical and electrical signals as AI workloads add network traffic. The companies said data centers need more bandwidth, lower latency and better power efficiency.
Marvell completed its acquisition of Celestial AI on Feb. 2. Under the original agreement, upfront consideration was valued at about $3.25 billion: $1 billion in cash and Marvell shares valued at $2.25 billion. The agreement also included up to $2.25 billion more in shares tied to revenue milestones.
At its Oct. 6 Investor Day, Marvell set a fiscal 2028 revenue target of about $20 billion, including roughly $18 billion from data centers. As of Aug. 1, the company reported $3.93 billion in cash and cash equivalents and $4.96 billion in long-term debt.
Reuters reported that Bernstein analysts viewed a deal of this size as likely to require additional financing and potentially pose integration challenges. The reports did not disclose financing terms.
