Marvell Agreed to Pay $1,132 a Share for Lumentum. The Stock Trades Near $510. Here's Why It’s Not as Good As It Looks.

The Motley Fool · Matt Frankel, CFP® · 2026-11-06 12:11 UTC

The gap between Lumentum's stock price and Marvell's offer looks like easy money. It isn't.

When Marvell Technology (MRVL -16.43%) agreed to acquire Lumentum (LITE -18.68%) on Nov. 2, the deal valued Lumentum at about $1,132 per share, a roughly 24% premium over its pre-talks trading price. Three days later, Lumentum closed at about $510.

That's not quite the bargain it seems. Even based on the current value of Marvell's offer, Lumentum trades at about 85% of what it would be worth if the deal closes, a gap of about 15% (we'll discuss why we say "current value" in a bit). Here's why that gap exists, and why I don't think it's free money.

Image source: Getty Images.

Read the full story at The Motley Fool · All coverage of this story