Cable One, Inc. (NYSE: CABO) has agreed to purchase the remaining 55 % of Mega Broadband Investments Holdings LLC (MBI), a broadband operator that serves roughly 210,000 residential and business customers and 675,000 passings across the Southeast, Northwest and Mid‑South. The deal, valued at a purchase price of $475 million to $495 million, will close on October 1, 2026 and will be financed with a mix of cash and debt, potentially including the company’s existing $1.25 billion revolving credit facility.
MBI’s 12‑month revenue through September 30, 2025 was approximately $310 million, and its net indebtedness at closing is expected to be between $845 million and $895 million. The acquisition will give Cable One full control of MBI’s network, adding about 675,000 passings to its portfolio and expanding its service footprint into rural markets where fiber overbuild and fixed‑wireless competition are intensifying.
Strategically, the transaction is designed to broaden Cable One’s geographic reach and strengthen its competitive position in markets facing increasing pressure from new entrants. By integrating MBI’s network, Cable One will achieve greater scale, enabling cost efficiencies and a stronger bargaining position with suppliers while positioning the company to deliver reliable high‑speed internet to underserved rural communities—a core part of its growth strategy.
Cable One’s own financial performance has been under pressure. Revenue fell from $1.67 billion in 2023 to $1.57 billion in 2024, and the company posted a net loss of $438 million in Q2 2025, largely due to non‑cash impairment charges. Adjusted EBITDA declined from $217 million in Q1 2024 to $203 million in Q2 2025. The acquisition will increase leverage, prompting Moody’s to downgrade Cable One’s Corporate Family Rating to B1 from Ba3 and S&P to a negative outlook, reflecting concerns that leverage could rise to 4.1x–4.3x at closing. A new CEO, James Holanda, is slated to take the helm by March 31, 2026, signaling a leadership transition amid these financial challenges.
Market reaction to the announcement was a 3.6 % rise in after‑hours trading on January 5, 2026. Investors appeared to view the deal as a positive step toward long‑term growth, focusing on the strategic expansion and potential scale benefits while acknowledging the increased debt burden and credit rating concerns.
Todd Koetje, Cable One’s interim CEO and CFO, expressed enthusiasm for the acquisition, noting that MBI’s complementary network aligns with the company’s mission to deliver reliable high‑speed internet to rural America. He emphasized that the full ownership will enable more efficient integration and accelerate service expansion across the newly acquired markets.
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