WideOpenWest Confirms Receipt of Unsolicited Non-Binding Preliminary Proposal

Rhea-AI Summary

WideOpenWest, a broadband services provider, received a non-binding proposal from DigitalBridge Investments, to purchase outstanding shares for $4.80 per share. The board will evaluate the proposal.

Insights

Financial Analyst

The preliminary proposal to acquire WideOpenWest, Inc. by DigitalBridge Investments and various Crestview entities deserves attention due to the nature of mergers and acquisitions, which typically have a significant impact on a company's share price and market valuation. Such a transaction could lead to operational synergies, potentially improving economies of scale and market competitiveness for the involved parties. It's imperative to examine the proposed purchase price of $4.80 per share in relation to the current market price and historical performance to assess its attractiveness. Furthermore, the formation of a special committee implies a careful and thorough review process which could lead to negotiations that might alter the initial offer. The outcome of this M&A activity could influence WideOpenWest's strategic direction and its shareholders' value, either positively, if the deal is favorable, or adversely, if terms are not met or the market perceives the move as not beneficial in the long run. As such, while the proposal is non-binding and in its early stages, it could mark the beginning of significant corporate reshaping.

Mergers & Acquisitions Expert

From a mergers and acquisitions perspective, the unsolicited nature of the proposal often indicates a scenario where the potential acquirer sees undervalued or strategically important assets within the target company. With Crestview already holding a stake, the attempt to consolidate ownership suggests a bullish outlook on the broadband industry's growth potential or the pursuit of specific strategic initiatives that require full control. Investors should monitor further developments closely, as subsequent negotiations or counteroffers could serve as a catalyst for price movements. It's important to weigh the premium offered against historical valuations and consider the possibility of a bidding war if other potential acquirers perceive value. This initial proposal phase is critical as it sets the stage for valuing the company against industry benchmarks and could prompt a reassessment of the intrinsic value of WideOpenWest by the market.

ENGLEWOOD, Colo., May 3, 2024 /PRNewswire/ -- WideOpenWest, Inc. (NYSE: WOW), a leading broadband services provider, today confirmed that it has received an unsolicited non-binding preliminary proposal from DigitalBridge Investments, LLC and various Crestview entities to purchase all of the outstanding shares of WOW! that Crestview does not currently own for $4.80 per share in cash.

The WOW! Board of Directors intends to establish a special committee of independent directors to evaluate the proposal.

WOW! stockholders do not need to take any action at this time.

WOW! does not undertake any obligation to make any further public comment or disclosure on matters related to the proposal or related matters unless and until WOW! determines that additional disclosure is appropriate or required by law.

About WideOpenWest
WOW! is one of the nation's leading broadband providers, with an efficient and high-performing network that passes nearly 2 million residential, business and wholesale consumers. WOW! provides services in 16 markets, primarily in the Midwest and Southeast, including Michigan, Alabama, Tennessee, South Carolina, Georgia and Florida, including the new all-fiber networks in Central Florida and Greenville County, South Carolina. With an expansive portfolio of advanced services, including high-speed Internet services, cable TV, home phone, mobile phone, business data, voice, and cloud services, the company is dedicated to providing outstanding service at affordable prices. WOW! also serves as a leader in exceptional human resources practices, having been recognized 10 times by the National Association for Business Resources as a Best & Brightest Company to Work For in the Nation, winning the award for the last six consecutive years and making the 2022 Top 101 National Winners list. Visit wowway.com for more information.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release, including statements regarding WOW!'s strategy, are forward-looking statements. The words "believes," "anticipates," "estimates," "plans," "expects," "intends," "may," "could," "should," "potential," "likely," "projects," "predicts," "continue," "will," "schedule," and "would" or, in each case, their negative or other variations or comparable terminology, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on WOW!'s current expectations and projections about future events and various assumptions. WOW! cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on WOW!'s forward-looking statements. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of WOW!), or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including under Item 1A, "Risk Factors" in the Company's most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The statements made herein are made as of the date of this press release and, except as may be required by law, WOW! undertakes no obligation to update them, whether as a result of new information, developments, or otherwise.

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SOURCE WideOpenWest, Inc.

FAQ

What is the stock symbol of WideOpenWest?

The stock symbol of WideOpenWest is WOW.

Who made the non-binding proposal to purchase shares of WideOpenWest?

DigitalBridge Investments, and various Crestview entities made the non-binding proposal.

What is the offer price per share mentioned in the proposal?

The offer price per share in the proposal is $4.80.

What action do WOW! stockholders need to take at this time?

WOW! stockholders do not need to take any action at this time.

Will WOW! provide further public comment or disclosure on the proposal?

WOW! will only provide further public comment or disclosure if deemed appropriate or required by law.