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Investing.com -- WideOpenWest Inc (NYSE:WOW) stock surged 47.6% after the broadband provider announced it has entered into a definitive agreement to be acquired by affiliated investment funds of DigitalBridge Investments and Crestview Partners in an all-cash transaction valued at approximately $1.5 billion.
Under the terms of the agreement, shareholders will receive $5.20 per share in cash, representing a 37.2% premium to the unaffected price of $3.79 prior to the initial non-binding offer on May 2, 2024, and a 63% premium to the closing price on August 8, 2025. Crestview, WOW’s largest stockholder with approximately 37% of outstanding shares, has agreed to roll over all of its shares.
The transaction comes after WideOpenWest reported challenging second quarter results, with total revenue declining 9.2% YoY to $144.2 million and a net loss of $17.8 million. Despite these results, the company maintained relatively stable high-speed data revenue at $104.8 million, down just 0.2% compared to the same period last year.
"Today’s announcement is an exciting step for WOW!’s investors, employees and customers," said WOW! CEO Teresa Elder. "WOW!’s next chapter with DigitalBridge and Crestview will bring new and exciting opportunities to our stakeholders and enhance our position as a trusted provider of fast, reliable and affordable broadband solutions."
The WOW! Board of Directors unanimously approved the proposed transaction following the recommendation of a special committee of independent directors. The deal is expected to close by the end of 2025 or in the first quarter of 2026, subject to shareholder approval and regulatory clearances. Upon completion, WOW! will become a private company and will no longer be traded on any public securities exchange.
The acquisition will allow WideOpenWest to continue its fiber expansion strategy, which has been a key focus as the company passed an additional 15,500 homes in its Greenfield markets during the second quarter.
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