# Marvell's Lumentum deal was worth $1,132 a share at signing and $740 on November 12
> Marvell is buying Lumentum for 4.5 MRVL shares per LITE share, about $1,132 at the October 28 prices it was set on. At the November 12 close that was $740.03, with LITE at $624.65. Terms, why both fell, and the 2028 timeline.
By Maya Koeva · 2026-11-13
Marvell is buying Lumentum in an all-stock deal: each LITE share becomes 4.5 MRVL shares, worth about $1,132 at the October 28 closes the deal was priced on. Marvell has fallen 34.7% since, so at the November 12 close those 4.5 shares were worth $740.03, and LITE closed at $624.65, 15.6% below that. The companies expect the deal to close in the first half of 2028.
4.5 Marvell shares per Lumentum share, fixed, no collar
About $1,132 a share; about $115 billion enterprise value
$740.03 a share (4.5 x the $164.45 MRVL close)
$624.65 on November 12, 2026
About 67% Marvell holders, 33% Lumentum holders
First half of 2028; outside date November 1, 2027, extendable to August 1, 2028
$3.2 billion, paid by Marvell if regulators block the deal or it runs past the outside date
A fixed share ratio means Lumentum holders get paid in Marvell stock, and Marvell stock has had a
bad two weeks. The headline $1,132 a share was worth $740.03 at the November 12 close, and LITE
traded below even that.
## Marvell Lumentum acquisition: the deal terms
The two companies signed the merger agreement on November 1, 2026, and announced it the next
morning, according to
[Marvell's 8-K](https://www.sec.gov/Archives/edgar/data/0001835632/000119312526442717/d352474d8k.htm)
and the
[joint press release](https://www.sec.gov/Archives/edgar/data/0001633978/000119312526442758/d163169dex991.htm).
| Term | What the filing says |
|---|---|
| Payment | 4.500 Marvell shares for each Lumentum share; cash instead of fractional shares |
| Ratio | Fixed, with no collar, so the dollar value moves with Marvell's price |
| Headline value | About $1,132 per Lumentum share, about $115 billion enterprise value |
| Premium | About 23.9% over Lumentum's unaffected October 28 close |
| Ownership | About 67% Marvell holders, 33% Lumentum holders, fully diluted |
| Leadership | Matt Murphy stays Chairman and CEO; three Lumentum directors, CEO Michael Hurlston among them, join Marvell's board |
| Synergies | More than $1 billion a year in run-rate cost savings; accretive to Marvell's non-GAAP EPS in the first year after close |
| Expected close | First half of calendar 2028 |
The $1,132 figure is 4.5 times Marvell's October 28 close of $251.65. That was the last day before
Bloomberg
[reported the talks](https://thenextweb.com/news/marvell-lumentum-deal-talks-bloomberg), after the
market closed.
## Why Marvell and Lumentum stock fell
Both stocks are about a third lower than on October 28, and they fell for different reasons on
different days.
| Date | What happened | MRVL close | LITE close |
|---|---|---:|---:|
| October 6 | LITE's peak close | $286.95 | $1,133.40 |
| October 28 | Last close before the talks were reported | $251.65 | $913.95 |
| October 29 | First session after the report | $218.34 -13.2% | $919.53 +0.6% |
| November 2 | Deal announced; Lumentum reports | $171.41 -12.7% | $684.40 -18.6% |
| November 5 | AI selloff; lowest close for both | $133.55 -16.4% | $509.70 -18.7% |
| November 12 | Latest close | $164.45 | $624.65 |
| October 28 to November 12 | | -34.7% | -31.7% |
*[Chart: Lumentum (LITE) daily closes, October 28 to November 12, 2026. The low is November 5 at $509.70.]*
**October 29: Marvell fell on the talks.** Bloomberg said Marvell would likely pay in shares, and
Raymond James analysts noted that an all-share deal avoids interest costs but costs Marvell holders
ownership. Marvell fell 13.2%, while LITE rose 0.6%. The Nasdaq 100 also fell that day after big tech results renewed
doubts about AI spending.
**November 2: Lumentum fell on a strong quarter.** The same morning, Lumentum
[reported](https://investor.lumentum.com/financial-news-releases/news-details/2026/Lumentum-Announces-First-Quarter-of-Fiscal-Year-2027-Financial-Results/default.aspx)
revenue of $1.26 billion for the quarter ended September 26, guided to $1.575 billion to $1.625
billion for the next one, and said it had secured a second major NPO/CPO win "backed by purchase
commitments exceeding $5 billion." The
[Motley Fool](https://www.fool.com/investing/2026/11/02/why-lumentum-stock-fell-14-9-today/) put
adjusted EPS at $4.57 against a $4.21 consensus. None of it mattered much, because the fixed ratio
had turned LITE into a claim on Marvell stock, and Marvell fell another 12.7%.
**November 5: the whole group sold off.** The Nasdaq fell 5.5%, its
[worst day since April 2025](/blog/stock-market-crash), on fears that AI data center spending would
slow ([CNBC](https://www.cnbc.com/2026/11/05/stock-market-selloff-ai-fears.html)). Optical stocks
without a deal fell as hard that day: Coherent 13.0%, Credo 17.7%, MACOM 18.4% and Applied
Optoelectronics 20.9%.
From the November 5 low to November 12, MRVL rose 23.1% and LITE 22.6%. Lumentum is still 44.9% below its
October 6 peak close.
## What the gap means for Lumentum stock
At the November 12 close, 4.5 Marvell shares were worth $740.03. LITE closed at $624.65, $115.38
lower. Put another way, LITE traded 15.6% below the value of the shares it is due to become.
Traders call that gap a merger spread, and it has widened since the last close before the
announcement:
| Close | 4.5 x MRVL | LITE | LITE below deal value |
|---|---:|---:|---:|
| October 30 | $883.80 | $840.70 | 4.9% |
| November 2 | $771.35 | $684.40 | 11.3% |
| November 5 | $600.98 | $509.70 | 15.2% |
| November 12 | $740.03 | $624.65 | 15.6% |
A spread prices two things. One is time: the deal is not expected to close until the first half of
2028, and investors who tie up money for more than a year want a return for it. The other is risk: the chance that
regulators, a shareholder vote or a better offer stops the deal. A longer wait or more doubt
means a wider gap.
Because the ratio is fixed, the dollar gap moves with Marvell. Every $1 move in MRVL moves the deal
value by $4.50. The percentage is the cleaner read.
If the deal breaks, LITE trades on its own again, and a fee may change hands:
- **$3.2 billion from Marvell to Lumentum** if the deal ends at the outside date or on a final
antitrust or foreign-investment block, with every other condition met.
- **$5.8 billion from Marvell** if its board withdraws its recommendation or it goes for a superior
proposal, plus certain later cases.
- **$2.9 billion from Lumentum** in the matching cases on its side.
We don't give a view on whether to trade it. A wide spread can widen further, as this one did when
Marvell fell in early November, or if a regulator raises doubts.
## What Serenity said about the deal
Serenity posts as [@aleabitoreddit](/blog/who-is-aleabitoreddit) on X, one of the accounts with a
long graded record in the Quantral app. These are that account's opinions, not Quantral's.
The day after the Bloomberg report
([October 29](https://x.com/aleabitoreddit/status/2115624832947917083)):
> "...$MRVL is in the final stages of a deal to acquire $LITE. Attempting to vertically integrate
> the most supply constrained chokepoints… with lasers."
On the announcement, Serenity argued the other laser makers gained the most
([November 2](https://x.com/aleabitoreddit/status/2117255303301612014)):
> "My opinion is that independent Western laser players, like $AAOI, $COHR, and $SIVE became a lot
> more strategically valuable... M&A premiums likely went up."
On what the structure means for LITE holders
([November 2](https://x.com/aleabitoreddit/status/2117296667108278605)):
> "$LITE shareholders can cry though about the 1+ year overhang until deal goes through in 2028.
> There's less independent price discovery as well since a lot of it will be pegged around 4.5
> Marvell shares : 1"
And, in the same post, on how the deal could have been built:
> "Having a fixed dollar MC value floor probably would have been better than the 4.5x:1 ratio."
The sharpest pushback on the deal's logic came from a rival. On November 5, Serenity
[summarized](https://x.com/aleabitoreddit/status/2118200689453314341) Coherent's earnings call:
asked about the merger, Coherent's management said customers will prefer an independent optical
supplier without competitive conflicts. If buyers do avoid a laser maker owned by a chip company
they compete with, Marvell loses some of the sales it is paying for. Light Reading
[laid out](https://lightreading.com/optical-networking/marvell-lumentum-deal-tests-whether-ai-optics-go-single-vendor)
the conflict: Lumentum sells lasers to transceiver makers that also buy Marvell's DSP chips. The companies
say modules will be under 10% of combined revenue.
It is too early to call. From October 28 to November 12, Coherent fell 3.1% and MACOM 5.8%, far
less than Lumentum or Marvell, while Semtech fell 18.7% and Applied Optoelectronics 35.7%.
Acquisitions have changed Marvell's supplier ties before: in April, after buying Celestial AI,
it cancelled all of Celestial AI's purchase orders with POET, saying POET had broken its
confidentiality obligations, as
[our POET page](/blog/poet-stock) explains. For the wider group, see
**[our AI infrastructure stocks list](/blog/ai-infrastructure-stocks)**.
## What to watch before the deal closes
1. **The S-4.** Marvell has to file a registration statement for the new shares, and it has to be
declared effective before closing. An S-4 sets out the background of the talks and the
bankers' fairness opinions.
2. **Two shareholder votes.** Lumentum holders vote to adopt the merger agreement. Marvell holders
vote on issuing the new shares and a charter amendment.
3. **Regulators.** The HSR waiting period has to expire, and certain other regulatory approvals
are needed. The filings do not name the other jurisdictions.
4. **The outside date.** November 1, 2027, at 11:59 p.m. Pacific. If regulatory approvals are still
pending, it extends to February 1, May 1 and then August 1, 2028.
5. **Marvell's share price.** With no collar, it sets what LITE holders get. Watch the spread in
percent, not dollars.
## Common questions
### What do Lumentum shareholders get in the Marvell deal?
4.5 Marvell shares for each Lumentum share, plus cash for any fractional share. At the November 12
close that was worth $740.03 a share.
### When will the Marvell Lumentum deal close?
The companies expect it to close in the first half of calendar 2028. It needs both shareholder
votes, an effective S-4, Nasdaq listing of the new shares, HSR expiry and other regulatory
approvals.
### Is the Marvell Lumentum deal cash or stock?
Stock. Lumentum holders get Marvell shares at a fixed ratio, with cash only for fractional shares.
There is no collar, so the value rises and falls with Marvell.
### What happens to LITE if the deal fails?
Lumentum keeps trading on its own. If the deal ends on an antitrust or foreign-investment block or
at the outside date with every other condition met, Marvell pays Lumentum $3.2 billion.
### Why did Marvell stock fall after the Lumentum deal?
Marvell fell 13.2% the day after Bloomberg reported it would likely pay in shares, which dilutes
Marvell holders, and 12.7% on the announcement day. It then fell 16.4% in the November 5 AI selloff.
We don't give buy or sell advice.
## Try it
Follow what the accounts we track say about Lumentum and Marvell while the deal works through its
votes and approvals, with every post and the record of the account behind it. Quantral is an
investment ideas app built on alternative data, on the web at
[app.quantral.com](https://app.quantral.com), on iOS and on Android, with a 7-day free trial on
the yearly plan. For what the optics layer does, see
**[what AI infrastructure is](/learn/what-is-ai-infrastructure)**.
Prices are daily closes through November 12, 2026. Deal terms are from the merger agreement and
press release filed with the SEC on November 2, 2026, linked above. Positions attributed to accounts
are their views, not Quantral's.
---
*Quantral surfaces signals and context from public sources to support your own research. Nothing
here is financial advice or a recommendation to buy or sell. Past signals are not indicative of
future results.*