Mark Roussin, CPA on $LITE (Nov 10, 2026)

Well, on November 2nd and even before that, Marvel announced that it had entered into an agreement to acquire Lumentum, whose stock symbol is (LITE). "Lumentum" is a company with extensive experience in optical and advanced photonic technologies.

Its products include advanced lasers and optical components that are becoming increasingly important in modern data center networks.

Marvell wants to strengthen its position in the field of optical communication, and combining Marvell's expertise in semiconductors and networks with Lumentum's optical technology could create a more comprehensive resource for artificial intelligence infrastructure .

Under the terms of the agreement, Marvell will acquire Lumintum in an all- stock deal. Lumintum shareholders will receive 4.5 shares of Marvell for every Lumintum share they currently own.

The deal values Lumentum at approximately $115 billion based on the company's value, but since it is an all-stock deal , it will depend on Marvell's stock price.

for Lumentum, we are talking about a premium of more than 25%.

Following the completion of the acquisition, Marvell’s existing shareholders are expected to own approximately 67% of the combined company. Lumintum shareholders will own approximately 33%.

Lumintum brings specialized manufacturing capabilities. There is nothing to diminish that.

I now understand why management wanted to acquire " Lumentum". This is not the point of confusion here. I can certainly see the strategic benefits, but I don't think the deal offers the return for risk that I'm looking for .