Cable One Acquires 55% Stake in Mega Broadband for Approximately $475M to $495M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 05 2026
0mins
Should l Buy CABO?
Cable One announced it has entered into a definitive agreement to acquire all of the equity interests in Mega Broadband Investments Holdings LLC that it does not already own. "We are excited about the opportunity to acquire full ownership in MBI," said Todd Koetje, Cable One Interim CEO and CFO. "Our strategic investment in MBI reflects our continuing commitment to provide rural America with reliable high-speed internet service. MBI has developed an excellent network in geographies that will be complementary to our existing footprint, enable us to expand our overall market footprint and enhance our long-term growth prospects. Their operating model and local-first focus is in line with our own operating philosophy and we look forward to combining with them and welcoming their exceptional team of associates to Cable One." Cable One currently owns a 45% stake in MBI, and certain affiliates of GTCR LLC and MBI management own the balance of MBI. Under the terms of the transaction, the company will pay a purchase price for the 55% of MBI that it does not already own calculated under a formula based on (i) a multiple of MBI's adjusted earnings before interest, taxes, depreciation and amortization and (ii) MBI's total net indebtedness. Based on currently available information, (i) the purchase price payable by the Company is expected to range between approximately $475M and $495M; and (ii) MBI's total net indebtedness that will be outstanding at the time it becomes a wholly-owned subsidiary of the Company in the fourth quarter of 2026 is expected to be approximately $845M to $895M in the form of term loans maturing in November 2027. The GTCR Investors held a previously established put option to sell to the company all the equity interests in MBI that the company did not already own. On January 2, 2026, the GTCR Investors exercised this put option. Cable One intends to finance the purchase price for the transaction with a combination of cash resources and indebtedness, which may include borrowings under the company's existing $1.25B revolving credit facility or new debt instruments. The transaction is subject to customary closing conditions. The company currently anticipates that the transaction will be completed on October 1, 2026.
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Analyst Views on CABO
Wall Street analysts forecast CABO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CABO is 202.50 USD with a low forecast of 145.00 USD and a high forecast of 260.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 100.820
Low
145.00
Averages
202.50
High
260.00
Current: 100.820
Low
145.00
Averages
202.50
High
260.00
About CABO
Cable One, Inc. is a broadband communications provider. The Company provides residential customers with an array of broadband offerings including Gigabit speeds, advanced wireless fidelity (Wi-Fi), and video services. It provides services that are similar to those provided by cable companies, telephone companies and fiber providers, among others. Its three primary product lines include residential data, residential video, and business data. Its broadband plant generally consists of a fiber-to-the-premises or hybrid fiber-coaxial (HFC) network with ample unused capacity. It offers Sparklight Television (TV), an Internet protocol-based (IPTV) video service that allows customers with its Sparklight TV app to stream its video channels from the cloud. Its customers are located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina, and Texas. It provides services to approximately 1.1 million residential and business customers out of 2.8 million passings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Financial Structure Optimization: The acquisition will be financed through a combination of cash and debt, potentially including borrowings from its existing $1.25 billion revolving credit facility, with completion anticipated in Q4 2026, further enhancing the company's financial flexibility.
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See More
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- Future Growth Potential: Following the anticipated completion of the transaction in Q4 2026, MBI's total net indebtedness is expected to be between $845 million and $895 million, allowing Cable One to further enhance its long-term growth prospects through resource integration and optimized network layout.
See More
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- New CEO Appointment: Jim Holanda will officially take over as CEO on February 16, 2026, and his leadership is anticipated to bring new strategic direction and growth opportunities, enhancing the company's competitive position in the market.
- Earnings Release Plan: The company will issue a press release after market close on February 26, 2026, detailing its Q4 and full-year 2025 results, providing investors with comprehensive financial data and analysis to assess the company's financial health.
- Live Webcast and Replay: The conference call will be available via a live audio webcast on Cable One's Investor Relations website, with a replay accessible until March 26, 2026, ensuring that investors who cannot attend live can still obtain relevant information.
See More
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- New CEO Appointment: Cable One has announced that Jim Holanda will officially take over as CEO on February 16, 2026, a strategic move aimed at enhancing the company's future growth and innovation initiatives.
- Earnings Release Schedule: The company plans to release its fourth quarter and full year 2025 financial results after market close on February 26, 2026, which is expected to provide investors with critical performance metrics and future outlook.
- Conference Call Details: Cable One will host a conference call on February 26, 2026, at 5 p.m. ET, allowing investors to participate via live audio webcast or by phone, ensuring they stay updated on the company's latest developments.
- Replay Service: A replay of the conference call will be available from February 26, 2026, until March 26, 2026, enabling investors to review the meeting content for important insights and analyses.
See More
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- Cable Stocks Perform Strongly: On Friday, the television and radio sector rose approximately 0.5%, led by Charter Communications' impressive 11.4% gain, indicating increased market confidence that may attract more investor interest.
- Charter Communications Leads Gains: The strong performance of Charter not only boosts its market valuation but could also stimulate price increases in other cable companies, enhancing the overall investment appeal of the sector.
- Cable One Also Shines: Cable One's stock rose about 6.1%, reflecting optimistic sentiment among investors regarding the cable market, potentially leading to increased capital inflow and further industry recovery.
- Market Sentiment Rebounds: The rise in cable stock prices suggests a restoration of investor confidence in the sector, which may signal future growth potential, especially against the backdrop of recovering advertising and subscription revenues.
See More
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- Rating Downgrade: On January 13, 2026, Wells Fargo Securities downgraded all four major cable stocks, including Charter Communications (CHTR), Comcast (CMCSA), Optimum (OPTU), and Cable One (CABO) to Underweight, reflecting a pessimistic outlook for the industry.
- Subscriber Loss Forecast: Analysts predict that cable companies will lose 1 million residential broadband subscribers by 2026, primarily due to fierce competition from fixed wireless access and fiber, which are expected to account for 100% of net broadband additions.
- Intensifying Competition: Fixed wireless access is projected to add nearly 4 million subscribers in 2025 and maintain around 3.7 million net adds in 2026, showcasing strong growth potential for wireless carriers and increasing pressure on cable operators.
- Gloomy Industry Outlook: Due to market saturation, immigration headwinds, and fewer price hikes, major mobile network operators are expected to see a 10% decline in postpaid phone net adds in 2026, with overall industry growth slowing to about 4%, indicating intensifying competition in both cable and wireless markets.
See More
Cable One Acquires Remaining 55% of MBI for $475M-$495M
- Acquisition Agreement: Cable One announced a definitive agreement to acquire the remaining 55% equity interest in Mega Broadband Investments Holdings LLC for an estimated purchase price between $475 million and $495 million, aimed at expanding its market footprint in the Southeast and Mid-South U.S.
- Market Expansion Opportunity: Full ownership of MBI will provide Cable One with approximately $310 million in annual revenue and 210,000 customers, enhancing its competitive position in the rapidly growing broadband market.
- Financial Structure Optimization: The acquisition will be financed through a combination of cash and debt, potentially including borrowings from its existing $1.25 billion revolving credit facility, with completion anticipated in Q4 2026, further enhancing the company's financial flexibility.
- Strategic Integration Plan: Cable One's Interim CEO stated that this acquisition aligns with the company's operational philosophy, aiming to enhance service quality and drive long-term growth by integrating MBI's network and team.
See More
Cable One Acquires 55% of Mega Broadband for $475M-$495M, Expanding Market Footprint
- Acquisition Agreement: Cable One has signed a definitive agreement to acquire 55% of Mega Broadband for approximately $475 million to $495 million, significantly expanding its market presence in the Southeast and Mid-South U.S.
- Market Expansion Opportunity: Full ownership of MBI, which generated $310 million in annual revenue and serves 210,000 customers, will enable Cable One to enhance operational efficiency and strengthen its position in the competitive broadband market.
- Financial Structure Optimization: Cable One plans to finance the transaction through a combination of cash and debt, including borrowings from its existing $1.25 billion revolving credit facility, ensuring smooth transaction completion while mitigating financial risks.
- Future Growth Potential: Following the anticipated completion of the transaction in Q4 2026, MBI's total net indebtedness is expected to be between $845 million and $895 million, allowing Cable One to further enhance its long-term growth prospects through resource integration and optimized network layout.
See More
