Point Broadband and Clearwave Fiber have signed a definitive agreement to combine operations, creating one of the largest independent fiber operators in the United States, according to a press release statement issued Monday.
The combined entity will operate across 12 states, currently serving more than 500,000 homes and businesses with fiber internet. The companies aim to accelerate expansion to reach over one million passings through organic growth and acquisitions.
David Armistead, current CEO of Clearwave Fiber, will lead the combined company as Chief Executive Officer, while John Cinelli, Point Broadband’s Board Chairman and former CEO of Metronet, will serve as Chairman.
"With increased scale and density in our core geographies, we will accelerate fiber deployment while remaining focused on providing a world-class experience for each customer," said Armistead.
The transaction excludes Clearwave Fiber’s Southern Illinois operations, which are being purchased separately by Metro Communications.
Private equity firms GTCR and Berkshire Partners will jointly control the combined company and have committed additional growth capital to support expansion. Cable One (NYSE:CABO), currently an investor in both companies, will remain a significant shareholder. CABO, trading at $104.90, has seen its stock price fall over 71% in the past year and currently trades at just 0.41 times book value. InvestingPro analysis suggests the company is undervalued compared to its Fair Value estimate.
Point Broadband, founded in 2017, operates primarily in the Southeast and Midwest. Clearwave Fiber was formed in 2022 through a joint venture among Cable One, GTCR, The Pritzker Organization, and Stephens Capital Partners.
The transaction is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. Investors tracking this development should note that CABO’s market capitalization currently stands at $591 million, with analysts setting price targets ranging from $107 to $260. Discover more financial insights and 10+ additional ProTips for Cable One with a comprehensive InvestingPro Research Report.
In other recent news, Cable One Inc. reported its third-quarter earnings for 2025, significantly surpassing expectations with an earnings per share (EPS) of $14.32, compared to the forecast of $7.65. However, the company’s revenue slightly missed projections, coming in at $376 million versus the anticipated $378.9 million. Meanwhile, Cable One announced a leadership transition, with James Holanda set to become the next Chief Executive Officer by March 31, 2026. Holanda, who brings over 35 years of experience in the cable and broadband industry, will succeed Julia M. Laulis. Additionally, Moody’s Ratings downgraded Cable One’s Corporate Family Rating to B1 from Ba3, citing governance considerations related to the company’s upcoming acquisition of the remaining equity interest in Mega Broadband Investments Intermediate I. This acquisition is expected to increase Cable One’s leverage, impacting its credit ratings. Moody’s also downgraded all instrument ratings by one notch. These developments highlight significant changes and challenges for Cable One as it navigates its current strategic and financial landscape.
