Marvell-Lumentum Deal Said to Carry No Big Premium; Both Stocks Slide
MRVL has more than doubled off its 52-week low of $70.685 on light trading volume (0.2× avg).
Summary
CNBC's David Faber said Friday that Marvell's all-stock acquisition of Lumentum will not come at a big premium for Lumentum holders, with an announcement possible as soon as mid-week next week. That follows Bloomberg's Wednesday report that Marvell is in advanced talks to buy the data center optics maker. The market read it as a win for Lumentum holders being denied a rich exit and a costly use of Marvell stock: Lumentum fell 3.9% and Marvell dropped 5.6% on Friday. Marvell is a $178B company that just raised FY2028 revenue guidance to $20B at its October investor day, so an all-stock deal of this scale would be its largest optics bet yet and dilutes existing holders. Watch for a formal announcement next week, which would confirm the exchange ratio and premium.
At the time of this announcement, MRVL was trading at $203.06 on NASDAQ in the Technology sector, with a market capitalization of approximately $178.1B. 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 7 out of 10. Source: Seeking Alpha.