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Marvell and Lumentum announced a definitive all-stock merger on Monday. Marvell holders will own about 67% of the combined company.
Lumentum holders get 4.5 Marvell shares each, which at unaffected October 28th prices was worth about $1,132 a share, a 23.9% premium, and an of $115 billion. The companies promise more than $1 billion of annual cost savings and expect the deal to close in the first half of 2028, after shareholder and regulatory approval. Marvell also narrowed its preliminary third-quarter revenue range to plus or minus 2%.
The market marked the terms down at once. Marvell fell 12.7% to $171.41, which puts the offer at about $771 a Lumentum share, and Lumentum fell 18.6% to $684.40, about 11% below even that.
A gap that wide on a fixed-ratio stock deal says investors doubt it closes as written, and a close 18 months away leaves a long time for regulators or Marvell's own share price to change the math.
Marvell signs for Lumentum at $115 billion, then loses 13% in a day
Marvell and Lumentum announced a definitive all-stock merger on Monday. Lumentum holders get 4.5 Marvell shares each, which at unaffected October 28th prices was worth about $1,132 a share, a 23.9% premium, and an enterprise value of $115 billion. Marvell holders will own about 67% of the combined company. The companies promise more than $1 billion of annual cost savings and expect the deal to close in the first half of 2028, after shareholder and regulatory approval. Marvell also narrowed its preliminary third-quarter revenue range to plus or minus 2%.
The market marked the terms down at once. Marvell fell 12.7% to $171.41, which puts the offer at about $771 a Lumentum share, and Lumentum fell 18.6% to $684.40, about 11% below even that. A gap that wide on a fixed-ratio stock deal says investors doubt it closes as written, and a close 18 months away leaves a long time for regulators or Marvell's own share price to change the math. SourcesAAC
Sources
- AMarvell and Lumentum to combine, Form 8-K exhibit 99.1 (SEC EDGAR)sec.gov
- ALumentum Holdings, Form 8-K (SEC EDGAR)sec.gov
- CTech Stocks Pull the Nasdaq Lower in the Stock Market Today Live, November 2, 2026 (Stocktitan)stocktitan.net
This story ran in the Afternoon Brief of November 2nd 2026.