Marvell Technology Inc. (NASDAQ:MRVL) just agreed to the biggest deal in its history. Shareholders are answering with the stock’s worst sell-off in a generation.

Shares fell 7.4% to about $182 on Monday, extending a three-day slide to 27.7%. That puts Marvell on track for its steepest three-session drop since Sept. 27, 2001, deeper than the 27.2% plunge of March 2025.

The selling began Oct. 29, after reports surfaced that Marvell was in talks to buy Lumentum Holdings Inc. (NASDAQ:LITE). On Monday, the company confirmed an all-stock deal valuing the laser maker at $115 billion.

Lumentum holders will receive 4.5 Marvell shares each and own about a third of the combined company. As a result, existing investors face heavy dilution. Roughly $61 billion of Marvell’s market value has vanished since Oct. 28.

Meanwhile, the VanEck Semiconductor ETF (NASDAQ:SMH) edged up 0.2%.

Chart: Marvell Technology daily three-day rate of change (%). Source: TradingView

Image: Envato Elements

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.