Lumentum Shares Fall 18.59% After Marvell Announces All-Stock Deal

Marvell (MRVL) announced an all-stock agreement to acquire Lumentum (LITE), linking the laser maker’s value to Marvell’s share price; Lumentum stock fell 18.59% at the Nov. 2 U.S. market close.

Under the terms, each Lumentum share would be exchanged for 4.5 Marvell shares, so the payout’s value will move with Marvell’s stock. Both companies’ boards unanimously approved the transaction.

Marvell shares dropped 12.72% in the same session. Coherent (COHR) fell 4.90%, while Applied Optoelectronics (AAOI) declined 9.49%. Semiconductor analyst Damnang expects customers to qualify more laser suppliers during the review and identified Coherent and Applied Optoelectronics as potential beneficiaries. He said any opportunity for Applied Optoelectronics depends on how quickly it can expand production.

The deal would combine Marvell’s interconnect chips, switches and custom AI chips with Lumentum’s lasers and optical modules. Damnang warned that review by China’s State Administration for Market Regulation could take longer than a year. Shareholder votes and regulatory clearances are still required, with the companies targeting a close in the first half of 2028.