Marvell shares traded at $171 as of Nov. 2, down 46% from their peak, after Jensen Huang called the company the next trillion-dollar company in early June. The sell-off followed Marvell's agreement to acquire optical networking specialist Lumentum (LITE) in an all-stock deal with an implied enterprise value of about $115 billion, in which Marvell will issue 4.5 new shares for each Lumentum share. After the transaction, Marvell shareholders would own 67% of the combined company, a dilution the article says explains the negative market reaction. The author argues the deal could bring more than $1 billion in annual run-rate cost synergies and be accretive to adjusted EPS in the first year, and that the combined addressable market could expand to $550 billion from a $400 billion forecast by calendar 2030.
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