A couple of days ago I had pointed out that Cable stocks might be cheap. Well the Cox family thinks so, and have decided to take their company private, according to a report in the New York Times. Cox Enterprises, which owns 62% of Cox Communications, announced an offer this morning to acquire the remaining 38% of the company it doesn’t own for $32 per share. This represents a 16% premium to Friday’s close.
Despite all the pressure and so called competition from Bells and Satellite companies, it seems the cable companies are actually doing well, though not performing like St. Louis Cardinals. Often times I have said that listening to Wall Street can be injurious to your health, and this time around it is no different. Recent softness in subscriber numbers for Comcast and Cox was met with the typical Wall Street reaction – sell first ask questions later. Our friends at Loop Capital point out that, “At the 10,000 foot level, the offer may demonstrate that family money is moving in to capitalize on what we believe is an undervalued industry.”
One thought on “Cox: Going private”
Go Cards! Yanks Who???