Cable One has officially spun off from Graham Holdings, with the Phoenix-based MSO's stock spiking as much as 6 percent over issue price during first-day trading on the New York Stock Exchange amid M&A speculation.
"We believe Cable One's single-class share ownership and low telco-based competition make it attractive in an acquisitive environment, and expect investors to put some premium on Cable One shares for its M&A potential," reads a J.P. Morgan investor note.
The spinoff, announced late last year, was completed at midnight on July 1, with Graham shareholders receiving one share of Cable One for every Class A or Class B share of Graham they own. The stock trades under the symbol "CABO."
Trading at $430 a share, Cable One stock is the most expensive in the cable industry, due to the small number of shares issued.
"Cable One is extremely well positioned as an independent company to continue its tradition of excellent returns for its shareholders, rewarding careers for its associates and unusually high satisfaction for its customers," CEO Tom Might said in a statement.
In an investor presentation in June, Might said the company will continue to invest in its growing broadband services businesses, while de-prioritizing its shrinking video services business.
For more:
- read this Graham Holdings press release
- read this Multichannel News story
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