Why Shares Of Broadband Provider WideOpenWest Are Shooting Higher Premarket Today

Broadband provider WideOpenWest, Inc. (WOW) shares soared in Tuesday’s premarket session after the company announced a going-private transaction.

The Engelwood, Colorado-based company said it has reached a definitive agreement under which affiliated investment funds of DigitalBridge and Crestview Partners will acquire all of its outstanding shares not already owned by Crestview and its affiliates.

The deal has been negotiated for $5.20 per share in cash, with an enterprise value of about $1.5 billion.

The per-share transaction value represented a 54% premium over WideOpenWest’s closing price on Monday. 

The company noted that the purchase price represented a 37.2% premium to the $3.79 stock price, before the initial non-binding offer of $4.80 submitted by the purchaser group on May 2, 2024.

Reacting to the proposed transaction, WideOpenWest stock jumped 46.63% to $5.

On Stocktwits, retail sentiment toward the stock turned to ‘extremely bullish’ (94/100) by early Tuesday, from ‘neutral’ a day ago. The message volume on the stream perked up to ‘extremely high’ levels.

CEO Teresa Elder said,  "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."

Jonathan Friesel, Senior Managing Director and Head of Fiber at DigitalBridge, said, “We intend to invest in expanding and upgrading WOW!'s networks, adopting new technologies, and ensuring the organization has the resources and support needed to continue delivering fast, reliable internet service and a high-quality customer experience at competitive prices."

WideOpenWest’s board has unanimously approved the proposed transaction. Crestview, whose holding represented 37% of WideOpenWest's outstanding shares, has agreed to vote in favor of the transaction, subject to specific terms and conditions set forth therein.

The transaction is expected to close by the end of the year or in the first quarter of 2026, subject to the satisfaction of the closing conditions, including the receipt of stockholder approval and of required regulatory approvals. 

Upon completion of the transaction, WideOpenWest will no longer be traded or listed on any public securities exchange.

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