Marvell and Lumentum lose $91 billion in market value as merger doubts mount

Marvell Technology's planned all-stock acquisition of Lumentum has erased more than $91 billion in combined market value since Oct. 28. Lumentum fell nearly 19% on Monday, its largest daily percentage decline since April 3, 2025, while Marvell fell 13% to $171.41, its lowest close since July 29. The selloff has raised questions about the deal's valuation, but it looks unlikely for now that either company will walk away. The deal needs shareholder and regulatory approvals, including in China, and is expected to close in the first half of 2028. Termination fees are $2.9 billion for Lumentum and $5.8 billion for Marvell in specified circumstances, with a separate $3.2 billion fee in certain regulatory-related terminations. B. Riley downgraded Lumentum to Neutral from Buy and cut its target to $770 from $1,142, citing the fixed exchange ratio and Marvell share-price risk. On Tuesday, Lumentu