Graham Holdings’ board of directors has decided that its Cable One division would be more successful on its own with the spinoff slated for next year.
Graham Holdings board of directors gave management its nod of approval to proceed with plans for the complete legal and structural separation of Cable One, which will result in the cable operator being a publicly traded company.
“After a careful review of strategic options, we believe that a separation of Graham Holdings and Cable One will create value for the companies and our shareholders,” said Donald E. Graham, chairman of the board of directors. “The separation will position Graham Holdings to pursue continued growth opportunities, while enabling Cable One to focus entirely on its video, Internet and voice services and to attract a more natural stockholder base.”
The spinoff still needs to clear the usual regulatory hurdles and final approvals of the transaction’s terms by Graham’s board of directors.
Cable One, which dropped 15 Viacom channels earlier this year, said during its recent third quarter earnings report that it lost 14,076 video subscribers in the quarter, but profit was up.
Last year Graham Holdings Company sold its Washington Post publishing business to Amazon founder Jeff Bezos. Cable One offers its triple play services to subscribers in 42 markets across 19 states.
