- DigitalBridge and Crestview Partners completed the take-private acquisition of WideOpenWest (WOW!) for $5.20 per share in cash, valuing the deal at about $1.5 billion.
- The offer implies sizable premiums to prior trading levels, and Crestview will roll over its ~37% stake.
- Operationally, Q2 2025 revenue fell 9.2% YoY while high-speed data revenue held nearly flat and Adjusted EBITDA margin improved to 48.8%.
- Under private ownership, WOW! aims to accelerate fiber expansion and network modernization while managing leverage and legacy video/telephony declines.
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The acquisition of WOW! by DigitalBridge and Crestview reflects the broader industry trend of consolidation in broadband infrastructure and the premium investors are willing to pay for stable HSD revenue streams and fiber expansion potential. The $5.20/share offer implies strong confidence in WOW!’s ability to monetize its Greenfield market builds and modernize its legacy network, particularly at a moment when legacy video and telephony revenues are under pressure.
Despite a nearly 10% YoY decline in total revenue, WOW! has managed to hold its high-speed data revenue almost flat, indicating resilience in its core broadband business even as video and telephony continue to decline sharply. Adjusted EBITDA margin rose to 48.8% from 44.1%, helped by cost reductions, particularly in video. The acceleration in Greenfield passes (homes passed) signals capital allocation toward the future growth vector.
From a valuation perspective, the transaction’s enterprise value of $1.5 billion, coupled with rolling over of Crestview’s ~37% equity stake, shows alignment between existing ownership and new investors; this rollover also indicates belief in long-term value. The implied valuation multiple—enterprise value divided by full-year EBITDA (estimate via trailing Q2)—would need checks versus other broadband peers, especially fiber-focused ones, to assess whether this is accretive in a competitive M&A landscape.
The strategic implications are multifold: WOW! will benefit from relief from quarterly public scrutiny, allowing greater investment in network capex (particularly fiber and possibly DOCSIS 4.0 where applicable), customer experience, and pricing strategy without fearing short-term churn impacts. For DigitalBridge, this enhances its fiber/digital infrastructure portfolio, strengthening its AUM and its positioning in markets with broadband access gaps. For Crestview, the deal provides continued exposure via rollover, with upside coming from operational improvements post-take-private.
Open risks include: regulatory and antitrust scrutiny (especially for broadband providers with local monopolies or limited competition); execution risk of expansion into Greenfield/Edge-out markets (penetration remains modest); potential capital intensity and costs in upgrading legacy assets; subscriber losses in legacy markets; interest rate and debt financing environment, especially with ~$1.05 billion of existing leverage.
Key open questions that market participants may track: what multiple was paid on trailing EBITDA or adjusted free cash flow; how DigitalBridge/Crestview plan to manage capital expenditure vs free cash flow tradeoffs; what the timeline is for network modernization (fiber roll-outs, perhaps DOCSIS 4.0 or fiber-deep); how WOW! will address declines in video/telephony; what synergies or operational efficiencies are planned under new ownership; whether management changes are part of the new phase.
Supporting Notes
- Shareholders will receive $5.20 per share in an all-cash transaction; enterprise value approximately $1.5 billion.
- The offer represents premiums of ~37.2% to the unaffected price of $3.79 (pre-May 2024) and ~63% to the closing price on August 8, 2025.
- Total WOW! revenue in Q2 2025 fell 9.2% YoY to $144.2 million; high-speed data revenue was $104.8 million, down only 0.2%.
- Adjusted EBITDA for Q2 2025 was $70.3 million, up about 0.4% YoY, with margin rising to 48.8% from 44.1%.
- WOW! passed an additional 15,500 homes in Greenfield markets in Q2 to reach a total of 91,100 homes passed, with a 16.0% penetration rate.
- Legacy video revenue and RGUs declined significantly; video subscribers dropped ~40.6% YoY, HSD RGUs declined by ~5%.
- WOW!’s debt stands at ~$1.05 billion, with cash of ~$31.8 million; leverage of ~3.5× LTM Adjusted EBITDA.
- Crestview, the largest existing shareholder (~37%), will roll over its entire stake, aligning with new ownership.
- The transaction was unanimously approved by WOW!’s board and a special committee of independent directors.