Cable One’s Strategic Partnership with Mega Broadband

On December 20, 2024, Cable One, Inc. (“Cable One”) announced that it has entered into definitive agreements to amend its strategic partnership with Mega Broadband Investments (“MBI”). The strategic partnership provides Cable One with a path for a potential acquisition of all the MBI equity it does not already own pursuant to put option and call option arrangements between Cable One and the other MBI equity holders. The purchase price payable by Cable One upon any exercise of the put option or call option will be determined based on MBI’s future performance and other factors. The transaction is valued at approximately $1.5 billion to $1.7 billion, inclusive of upfront payments made by Cable One and initial estimates of option exercise closing payments and related debt assumption, based on an assumed October 1, 2026 option exercise closing. Cable One is a leading broadband communications provider serving more than 1 million residential and business customers across 24 states. MBI is a leading provider of broadband services across the Southeast, Northwest and Mid‑South United States and offers an extensive range of broadband, fiber connectivity, cable television and voice services for commercial and residential customers. Cravath is representing Cable One in connection with this transaction.

The Cravath team is led by partners Joseph D. Zavaglia and Matthew L. Ploszek and includes associates April M. Kent and Steven T. Marzagalli on M&A matters; of counsel Isaac C. Beerman and associate Caroline B. Bowman on financing matters; of counsel William D. Podurgiel and associate Connor F. O’Neill on securities matters; partner Eric W. Hilfers on executive compensation and benefits matters; and partner Lauren Angelilli, of counsel Kiran Sheffrin and associate Joshua Banafsheha on tax matters. Jay Kober also worked on executive compensation and benefits matters.