WideOpenWest Inc., a provider of broadband and other cable services, is exploring options including a sale, according to people with knowledge of the matter. The shares jumped as much as 13% on the news.
The Englewood, Colorado-based company is working with an adviser to solicit interest from potential suitors, said the people, who requested anonymity discussing confidential information.
WideOpenWest, which does business as Wow!, is led by Chief Executive Officer Teresa Elder. It counts Crestview Partners as its largest shareholder, according to data compiled by Bloomberg.
A representative for WideOpenWest declined to comment. A Crestview spokesperson didn’t immediately respond to a request for comment.
The shares gained 12% to $20 in regular New York trading, their highest close in almost three months. Its market capitalization advanced to $1.76 billion.
The company says its network spans states including Georgia, Alabama, Michigan, Florida, Tennessee and South Carolina. It had 532,900 subscribers as of Dec. 31. Crestview has been an investor since 2015, when it acquired a stake from Avista Capital Partners and others.
Cable operators have drawn interest from private equity and infrastructure investors in the past. Last year, Stonepeak completed its $8.1 billion acquisition of Astound Broadband.
(Updates with stock-market reaction starting in first paragraph.)