Filing Flows › Cable One (CABO) › Takeover & LBO
Is Cable One (CABO) a takeover target?
A leveraged buyout at today's price plus 30% ($9.40 a share) would return a loss of about 15% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. It already carries 36.5× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own. Latest signal (2026-11-02): Cable One sets up committee to 'evaluate strategic alternatives'.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $9.40 | today's $7.23 plus 30% |
| × shares | 5.7 million | |
| = Equity value | $53.6M | |
| + Debt refinanced | $3.1B | |
| − Cash | $166M | |
| = Enterprise value | $2.9B | 37.1× EBITDA of $79.2M |
| Fees | $58.9M | 2% of the price |
| New debt | $436M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.6B | 85% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.4B | $76.8M | $33.3M | −$236M | $672M |
| Year 2 | $1.4B | $75.7M | $51.4M | −$251M | $923M |
| Year 3 | $1.4B | $75.7M | $70.6M | −$270M | $1.2B |
| Year 4 | $1.4B | $76.8M | $91.3M | −$296M | $1.5B |
| Year 5 | $1.4B | $79.1M | $114M | −$327M | $1.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 37.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.9B | |
| − Debt left | $1.8B | |
| = Buyer's equity | $1.1B | |
| Money multiple | 0.43× | on $2.6B put in |
| Buyer's yearly return (IRR) | −15.4% |
Price against return
What the buyer makes at other premiums over today's $7.23.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $7.95 | −15.4% |
| 20% | $8.68 | −15.4% |
| 30% | $9.40 | −15.4% |
| 40% | $10.12 | −15.4% |
| 50% | $10.85 | −15.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.4B | |
| EBITDA, last 12 months | $79.2M | 5.5% of revenue |
| Depreciation and amortization | $331M | |
| Capital spending | $288M | |
| Debt | $3.1B | |
| Cash | $166M | |
| Share price | $7.23 | on Oct 16, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -3.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 21% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cable One would cost about $9.58 a share, $54.6M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $8.68 | $49.4M |
| Median | 32.5% | $9.58 | $54.6M |
| High end (a quarter paid more) | 51.8% | $10.98 | $62.5M |
Rumors and deal signals
- 2026-11-02 · news · Cable One sets up committee to 'evaluate strategic alternatives'
- 2026-10-31 · news · Cable One Adds Director Paul Keglevic to Board’s Strategic Alternatives Committee
- 2026-10-30 · news · Cable One elects Paul Keglevic to board and strategic alternatives committee
Cable One's latest quarter
Cable One, Q3 2026: revenue $332M (-12% year over year), operating margin -103.2%, net loss $432M, operating cash flow $92.6M. The chart follows the revenue to costs, profit and cash.
Questions
Is Cable One being acquired?
The latest signal on file is from 2026-11-02: Cable One sets up committee to 'evaluate strategic alternatives'. A headline is not a deal; Filing Flows lists the news, 8-K filings and 13D filings about a sale.
Could private equity buy Cable One?
A leveraged buyout at today's price plus 30% ($9.40 a share) would return a loss of about 15% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. It already carries 36.5× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
What would a takeover of Cable One cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cable One would cost about $9.58 a share, $54.6M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.