Key Takeaways
- • Cable One (NYSE: CABO) agreed to acquire the 55% equity stake in Mega Broadband Investments Holdings LLC (MBI) it does not already own, at an expected purchase price of $475 million to $495 million.
- • MBI's net debt is expected to be $845 million to $895 million, so the total transaction carries roughly $1.3 billion in combined value, per Cable One's disclosures.
- • Cable One extended the deadline to close the purchase from October 1 to October 9, 2026, and has not disclosed the outcome of a lender's reported challenge to the deal.
- • Cable One's rating was placed on CreditWatch Negative by S&P after the January 2026 announcement, reflecting concern about the added leverage.
- • MBI serves about 210,000 residential and business data customers across roughly 675,000 passings in the Southeast, Northwest and Mid-South under the Vyve Broadband brand, with trailing 12-month revenue of about $310 million.
Summary
Cable One, Inc. announced on January 5, 2026 that it had entered into a definitive agreement to acquire all equity interests in Mega Broadband Investments Holdings LLC that it did not already own. According to the company's press release, full ownership would give Cable One a larger and more geographically diversified operating footprint and create efficiency opportunities from greater scale. MBI reported total revenue of approximately $310 million for the 12 months ended September 30, 2025, and operates under the Vyve Broadband brand across the Southeast, Northwest and Mid-South United States. Todd Koetje, Cable One's interim CEO and CFO, said the company's strategic investment in MBI reflects its commitment to providing rural America with reliable high-speed internet.
Cable One's expected purchase price for the remaining 55% stake is between $475 million and $495 million. The company said it intends to fund the transaction with a combination of cash on hand and indebtedness. Reports indicate Cable One borrowed $700 million to preserve financial flexibility, and MBI's net debt is expected to be between $845 million and $895 million. Amendments to the existing strategic partnership with MBI give Cable One greater control over the timing of the acquisition. The deal was originally slated to close in the fourth quarter of 2026. Cable One later pushed the closing deadline from October 1 to October 9.
Credit analysts have focused on the transaction's leverage. S&P Global Ratings placed Cable One Inc.'s ratings on CreditWatch Negative following the announcement, and one commentary characterized the company as a distressed credit. The headline for this story reports that a lender is seeking to block the roughly $480 million acquisition. The full article could not be retrieved, so the grounds for the challenge, the lender's identity and any court or contractual action remain unverified in the available material.
Cable One's expected purchase price for the remaining 55% stake is between $475 million and $495 million. The company said it intends to fund the transaction with a combination of cash on hand and indebtedness. Reports indicate Cable One borrowed $700 million to preserve financial flexibility, and MBI's net debt is expected to be between $845 million and $895 million. Amendments to the existing strategic partnership with MBI give Cable One greater control over the timing of the acquisition. The deal was originally slated to close in the fourth quarter of 2026. Cable One later pushed the closing deadline from October 1 to October 9.
Credit analysts have focused on the transaction's leverage. S&P Global Ratings placed Cable One Inc.'s ratings on CreditWatch Negative following the announcement, and one commentary characterized the company as a distressed credit. The headline for this story reports that a lender is seeking to block the roughly $480 million acquisition. The full article could not be retrieved, so the grounds for the challenge, the lender's identity and any court or contractual action remain unverified in the available material.
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