WOW agreed to buy Knology for about $1.5 billion, the...
WOW agreed to buy Knology for about $1.5 billion, the two cable overbuilders said Wednesday. WOW, formerly Wide Open West, agreed to buy all the outstanding Knology shares for $19.75 a share. They said the price represented a 34 percent…
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premium over Knology’s average stock price during the three months preceding news reports that Knology might be for sale. Knology shares gained 7.5 percent Wednesday to $19.40. “This deal appears to have been struck relatively quickly as it was only on February 28 that Knology’s exploration of a potential sale was reported by the press,” Wells Fargo analyst Marci Ryvicker wrote investors. The transaction seems to have been reached at a higher multiple of estimated earnings than what most pay-TV distributors’ stock trades at now, she said: The deal reinforces the belief “that there is still room for multiple expansion within the cable sector."