Knology Shares Jumped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of regional cable operator Knology (NAS: KNOL) have jumped today by upwards of 22% on reports that the company may be putting itself up for sale.

So what:TheWall Street Journal reports that Knology is shopping itself around to possible buyers including private-equity firms. Sources say that Knology has tapped a financial advisor recently to help with the process.

Now what: There wasn't much deal-related detail in the report beyond those tidbits of speculation, but the WSJ did note that private-equity firms favor cable operators due to consistent cash flow brought in by subscribers. Knology is a small player in the Southeast, upper Midwest, and Kansas regions and boasts almost 800,000 subscribers as of last quarter, of which over 677,000 were residential customers.

Interested in more info on Knology? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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