US Stock Market Move | Rumor of planned acquisition of Lumentum; Marvell Technology, Inc. (MRVL.US) falls over 12%

On Thursday, Marvell Technology, Inc. (MRVL.US) opened sharply lower, falling more than 12% as of press time, with a market capitalization of approximately $192.7 billion; optical communications leader Lumentum (LITE.US) rose nearly 3%, with a market capitalization of $85 billion. On the news front, according to people familiar with the matter, Marvell Technology, Inc. is in advanced talks to acquire Lumentum. In the race to scale up in artificial intelligence, this could become a heavyweight deal. The people said the deal could be announced as soon as next week, but no final agreement has been reached, the talks could still end without a deal, and details such as timing could still change. If the acquisition of Lumentum succeeds, the deal would likely rank among the top 10 largest technology and telecommunications M&A transactions in history. It is worth noting that Marvell Technology, Inc. and Lumentum had already established a business partnership. Marvell currently purchases lasers from Lumentum, and the two companies announced in March this year that they would jointly demonstrate a system in which optical connectivity solutions work in coordination with an optical circuit switching platform to meet the demand of large AI data centers for high-bandwidth, low-latency and energy-efficient networks. If the potential acquisition is reached, the existing supply and technology cooperation between the two parties is expected to deepen further.