Cable One stock gains on amended MBI partnership

Investing.com -- Shares of Cable One climbed as much as 4.9% today, marking the most significant intraday rise since November 25, following the company's announcement of an amended partnership agreement with Mega Broadband Investments (MBI), a provider of broadband services in various regions of the United States.

The updated agreement grants Cable One enhanced control over the timing of its potential acquisition of the remaining 55% interest in MBI, which it does not currently own.

According to the company's statement, the acquisition will not take place before October 1, 2026, unless Cable One decides to proceed with the transaction earlier.

The strategic move involved Cable One paying $250 million to other MBI equity holders, in addition to them receiving proceeds from $100 million of new MBI debt.

This total of $350 million will be deducted from the purchase price when Cable One decides to acquire the remaining interest in MBI. Furthermore, the new arrangements offer Cable One flexibility regarding the timing of its potential full ownership of MBI.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com