Knology Shares Jumped: What You Need to Know
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.
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