WideOpenWest Inc. (NYSE:WOW) shares surged 47.93% in after-hours trading on Monday following the announcement of a $1.5 billion all-cash acquisition by DigitalBridge Group Inc. (NYSE:DBRG) and Crestview Partners. The deal values WOW! at $5.20 per share, representing a 63% premium to Friday’s closing price.
Check out the current price of WOW stock here.
What Happened: The transaction marks a strategic exit for public shareholders of the Englewood, Colorado-based broadband provider, which serves nearly 2 million consumers across 20 markets in the Midwest and Southeast.
Crestview, already WOW!’s largest stockholder with approximately 37% of outstanding shares, will roll over its entire stake in the private equity buyout.
“Today’s announcement is an exciting step for WOW!’s investors, employees and customers,” said CEO Teresa Elder in the company’s press release.
The $5.20 per share offer delivers a 37.2% premium to the unaffected price of $3.79 prior to initial acquisition discussions in May 2024.
See Also: Warren Buffett’s Berkshire Hathaway Lags Market By 25% Since Exit Announcement, Worst Gap Since 2020
Why It Matters: WOW! reported challenging second-quarter results alongside the acquisition announcement. Total revenue declined 9.2% year-over-year to $144.2 million, while the company posted a net loss of $17.8 million.
DigitalBridge, managing $106 billion in digital infrastructure assets, sees significant expansion opportunities.
The acquisition requires shareholder and regulatory approvals, with completion expected by year-end 2025 or early 2026. Upon closing, WOW! will delist from public exchanges.
Price Action: WOW! trades in a 52-week range of $3.06–$5.80 with a $289 million market capitalization, rising 5.96% to $3.38 in Monday's regular session, according to data from Benzinga Pro.
According to Benzinga Edge Stock Rankings, WOW shows negative short-, medium-, and long-term price trends, with weak momentum. See here how the stock stacks up against its rivals.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
