$LITE just announced an all-stock deal with $MRVL a few days ago at an enterprise value of $115B.
Today's EV? $54B.
Absolutely wild. Yeah it's pegged to $MRVL stock, but that's still a massive swing in just days. The deal value got cut in half because $MRVL tanked post-announcement.
This is what happens when you do all-stock M&A in a volatile market—the target company's "value" becomes a live trade tied to the acquirer's stock price. $LITE shareholders are basically long $MRVL now whether they like it or not.
If you were bullish on the deal at $115B, you're getting it at half price today. If you thought it was expensive before, now it's a potential steal. But if $MRVL keeps bleeding, so does the deal value.
Huge opportunity or huge risk depending on your conviction in $MRVL's AI infrastructure story. This is merger arb on steroids.
Today's EV? $54B.
Absolutely wild. Yeah it's pegged to $MRVL stock, but that's still a massive swing in just days. The deal value got cut in half because $MRVL tanked post-announcement.
This is what happens when you do all-stock M&A in a volatile market—the target company's "value" becomes a live trade tied to the acquirer's stock price. $LITE shareholders are basically long $MRVL now whether they like it or not.
If you were bullish on the deal at $115B, you're getting it at half price today. If you thought it was expensive before, now it's a potential steal. But if $MRVL keeps bleeding, so does the deal value.
Huge opportunity or huge risk depending on your conviction in $MRVL's AI infrastructure story. This is merger arb on steroids.