Marvell and Lumentum shares drop after all-stock merger plan

Shares of both Marvell and Lumentum fell after Marvell said late on November 2, 2026 that it would buy the optical components maker in a stock-for-stock deal, according to KuCoin, which cited MSX.COM pricing data. Marvell closed down 11.2% and Lumentum lost 18.11%.

Under the terms announced jointly by the two companies, Lumentum holders would get 4.5 Marvell shares for each share they own, valuing the target at an enterprise value of roughly $115 billion. The stated premium of close to 24% was measured against the October 28 closing prices of the two stocks, before takeover speculation surfaced, and the fixed exchange ratio leaves the final value tied to Marvell's share price.

Marvell, which sells chips, high-speed connectivity and switching products, said pairing its designs with Lumentum's lasers and optical parts would speed data movement inside AI data centers as copper links reach their physical limits. The companies put the combined addressable market at $550 billion by 2030.

Marvell forecast more than $1 billion in annual cost savings and higher adjusted earnings per share in the first year after closing. Existing Marvell holders would own about 67% of the combined company. Reuters reported that the price, financing risk and climbing AI infrastructure spending have drawn investor scrutiny. The deal needs shareholder and regulatory approvals and is expected to close in the first half of 2028.

This story was first reported by KuCoin.