WideOpenWest (WOW) stock surged on Tuesday after the broadband company announced an agreement with DigitalBridge Group, Inc. (DBRG) and Crestview Partners. This deal will see the private investment firms purchase all outstanding shares of WOW stock, taking the company private. Investors will note that Crestview Partners is already the largest shareholder of WOW stock.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The deal will see WideOpenWest stock acquired for $5.20 per share, a 37.2% premium to the stock’s unaffected price and a 63% premium to its closing price on Friday. The enterprise value of the deal is $1.5 billion. WideOpenWest expects the deal to close by the end of 2025 or in the first quarter of 2026.
Brian Cassidy, President and Head of Media at Crestview Partners, said, “Through this transaction, the company will deliver immediate value to WOW! stockholders, while bringing in an ideal capital partner in DigitalBridge to support WOW!’s long-term strategy, including geographic expansion and network technology upgrades.”
WideOpenWest Stock Movement Today
WideOpenWest stock was up 49.11% in pre-market trading on Tuesday, following a 5.96% rally yesterday. However, the shares were still down 31.85% year-to-date and 36.47% over the past 12 months. With today’s news came heavy trading of WOW stock, as some 3 million shares changed hands, compared to a three-month daily average of about 327,000 units.
Is WideOpenWest Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for WideOpenWest is Moderate Buy, based on one Buy and one Hold rating over the past three months. With that comes an average WOW stock price target of $4.75.
