Cable One Shares Rise with Revised MBI Partnership

Investing.com -- Cable One shares rose by up to 4.9% today, marking the largest daily increase since November 25. This increase came after the company announced a modified partnership agreement with Mega Broadband Investments (MBI), a broadband service provider in various regions of the United States.

The updated agreement provides Cable One with enhanced control over the timing of a potential purchase of the remaining 55% stake in MBI that it does not already own. According to the company's statement, unless Cable One decides to execute the transaction earlier, the acquisition will not occur before October 1, 2026.

This strategic move involves Cable One making a payment of $250 million to other MBI shareholders, allowing them to earn revenue from $100 million of new MBI debt. The total amount of $350 million will be deducted from the acquisition price when Cable One decides to purchase the remaining stake in MBI. Additionally, the new arrangements offer Cable One flexibility regarding the timing of potential full ownership of MBI.