WideOpenWest's Q2 2025: Unraveling Contradictions in Capital Strategy and Acquisition Plans

Greenfield builds and capital expenditure, acquisition timeline and certainty, strategic review and acquisition terms, acquisition timeline and approvals, capital expenditure plans are the key contradictions discussed in WideOpenWest's latest 2025Q2 earnings call.



Acquisition and Financial Terms:
- WOW! announced a definitive agreement for an all-cash acquisition by affiliated investment funds of DigitalBridge Investments and Crestview Partners at a price of $5.20 per share, valuing the company at approximately $1.5 billion.
- The offer represents a 37.2% premium to the unaffected price and a 63% premium to Friday's close, indicating a strong financial incentive for shareholders.

Greenfield Expansion and Penetration Rates:
- WOW! maintained strong greenfield market penetration rates at 16%, with an additional 15,500 new greenfield homes passed during the quarter, bringing the total to 91,100.
- This growth was driven by high-speed data revenue, which decreased slightly to $104.8 million, and an adjusted EBITDA margin increase to 48.8% due to successful greenfield expansion efforts.

Initiatives Impacting HSD Subscribers and ARPU:
- The company added 2,300 HSD subscribers in greenfield markets and 1,100 in edge-out markets, partially offsetting a total loss of 3,900 subscribers in the legacy footprint.
- ARPU reached a record high of $75.30, up 4.9% year-over-year, reflecting a rate increase and demand for higher speed tiers, which grew to 76% of HSD-only new connects.

Traditional Video Business Decline and Cost Management:
- The traditional video business declined to 42,500 subscribers, a 40.6% decrease from the same period last year, aligning with the company's strategic transition to YouTube TV.
- This decline led to a decrease in overall operating expenses, reflecting lower programming and support costs, which allowed WOW! to maximize investments in greenfield expansion initiatives.