Cable One Forms Special Committee as Stock Falls 95% This Year

Cable One's stock has fallen 95% year-to-date, and the troubled US mid-market operator has quietly set up a special committee of its board "established to evaluate strategic alternatives."

The company buried that detail in an October 30 8-K filing that primarily disclosed the appointment of Paul Keglevic to the board as it expands from eight to nine members. Keglevic, the filing showed, will also serve on the special committee.

Cable One declined to say when the committee was formed or what, specifically, it will evaluate. Boards typically create such committees to explore options for a struggling company: a possible sale, partnerships or joint ventures, or debt restructuring agreements. None of those outcomes is confirmed here — only that the company believes something needs examining.

What is pressing on the business?

Cable One, like many US cable operators, is losing broadband subscribers, and its share price reflects it. The company is scheduled to report Q4 2026 results on Thursday, November 5.

Two issues dominate. First, there is the strategic review itself, about which the company has said almost nothing beyond the filing's single phrase. Second, there is a court-blocked acquisition that the company says it still wants to close.

Who is Paul Keglevic?

Keglevic, 72, arrives with a track record at broadband operators in difficulty. He served as an independent director of Frontier Communications from June 2019 to April 2021, according to his LinkedIn profile. Frontier declared Chapter 11 bankruptcy in April 2020, emerged a year later, and completed a turnaround under then-CEO Nick Jeffery — now COO of Charter Communications — that culminated in Verizon's acquisition of the company.

He currently sits on the boards of Evergy Inc. and Telesat Corp, and previously served at QVC, Ascena Retail Group, Rite Aid Corporation and Tupperware Brands. His earlier executive career includes stints at Energy Future Holdings and PricewaterhouseCoopers.

Cable One will pay him a monthly cash fee of $40,000 — roughly $480,000 a year — plus a $7,500 per diem cash fee for additional time devoted to meetings or activities outside normal board duties. That per-diem rate suggests the board expects unusual work ahead.

Why is the Mega Broadband deal frozen?

Cable One's other pressing problem is its pending deal to acquire the 55% of Mega Broadband Inc. (MBI) it does not already own, for about $480 million.

The transaction stalled when CoBank, a lender holding about $1.1 billion in secured credit issued to Cable One, asked a New York district court to temporarily halt the deal. CoBank argued that Cable One was on the brink of bankruptcy and could not repay its debts if the transaction proceeded. The court paused the deal just as it was about to close.

Cable One has asked the court to dissolve the temporary restraining order. The operator disputes CoBank's characterization of its finances, noting that CoBank and other lenders would have remedies available if it missed an interest or principal payment.

Cable One also argued that further delays jeopardize a $1.3 billion loan agreement. The company intends to use that loan to repay revolving debt linked to the MBI deal and, in its words, to secure "additional runway to execute on its business priorities."

There is no resolution in sight. Last Wednesday, October 21, the judge adjourned the hearing on CoBank's order to show cause for the TRO and Cable One's motion to dissolve it until November 13 at 1pm ET. Those hearings were previously scheduled for October 30.

The Q4 results on November 5 will land eight days before that courtroom date, giving investors two data points in quick succession: the state of the subscriber base, and whether a $1.3 billion financing lifeline survives the delay.