WOW Goes Private: $1.5B DigitalBridge Deal & What It Means for Wireless Dealers

Wide Open West (WOW!), one of the nation's largest independent cable and broadband providers, is going private. DigitalBridge Group and Crestview Partners announced a $1.5 billion acquisition deal to take the company private, with closure expected in Q1 2026. For cell phone store dealers, this represents a significant shift in the broadband market landscape—and creates both challenges and opportunities.

Key Takeaways for Dealers:

• WOW! serves 4.7 million subscribers across 7 states

• Private equity backing will accelerate fiber expansion and network upgrades

• Increased competition in broadband markets where WOW! operates

• Potential for new partnership and reseller opportunities

• Market consolidation continues in cable/ISP space

The Deal: What Happened

Transaction Details

• Buyer: DigitalBridge Group and Crestview Partners (joint acquisition)

• Purchase Price: $1.5 billion

• Expected Close: Q1 2026

• Board Approval: Unanimous approval from WOW!'s board of directors

• Largest Shareholder: Crestview Partners (already WOW!'s largest shareholder)

Deal Timeline

• May 2024: DigitalBridge and Crestview initially offered to acquire WOW!

• August 2025: Deal officially announced and approved

• Q1 2026: Expected closing date

Who Is WOW! and Why Does This Matter?

WOW! Company Overview

• Headquarters: Englewood, Colorado

• Service Area: 7 states across the United States

• Customer Base: ~4.7 million subscribers (copper, cable, DSL)

• Services: Broadband, cable TV, phone service

• Recent Focus: Greenfield fiber deployments (91,100 fiber passings as of Q2 2025)

Why This Deal Matters for Dealers

1. Market Consolidation: Another independent ISP moving to private equity control

2. Competitive Pressure: Private equity backing means aggressive expansion and investment

3. Service Area Changes: Potential service improvements or pricing changes in WOW! markets

4. Partnership Opportunities: New ownership may create dealer/reseller opportunities

5. Market Dynamics: Affects competitive landscape in WOW!'s 7-state footprint

Understanding the Players: DigitalBridge and Crestview

DigitalBridge Group

Background: Major private equity firm focused on telecom infrastructure investment and development.

Expertise: Cell towers, fiber networks, data centers, and telecom infrastructure

Portfolio Companies:

• Zayo (fiber and bandwidth provider)

• Vertical Bridge (cell tower company)

• DataBank (data center operator)

• Telenet's tower business

• Multiple other telecom infrastructure assets

Strategy: Invest in undervalued telecom infrastructure and ISPs, upgrade networks, and create economies of scale through consolidation.

Crestview Partners

Role: Co-investor and WOW!'s largest existing shareholder

Involvement: Already held significant stake in WOW! before deal announcement

Strategy: Consolidate smaller ISPs to create larger, more efficient companies with competitive advantages

The Bigger Picture: Why Cable Companies Are Going Private

The Valuation Gap Problem

This deal highlights a critical market dynamic:

• Public Market Valuation: Cable companies trading at ~$1,000 per connected home

• Private Market Valuation: Fiber companies building for ~$4,000 per connected home

• Opportunity: Taking companies private and investing in fiber can generate returns that dwarf building from scratch

Why This Matters

According to analyst Craig Moffett (MoffettNathanson):

"This is exactly the kind of transaction you'd expect when you see the kind of divergence between public and private market valuations. Private equity can buy undervalued cable companies, invest in fiber upgrades, and generate massive returns. Returns from taking companies private can exceed returns from building fiber networks from scratch."

Industry Trend

This is part of a broader pattern in the telecom industry:

• Private equity firms buying smaller ISPs at discount valuations

• Consolidating multiple companies to create economies of scale

• Investing heavily in fiber expansion and network modernization

• Creating larger, more efficient regional operators

• Competing aggressively with major carriers

What This Means for WOW! Customers and Markets

Expected Changes Post-Acquisition

Network Investment: DigitalBridge committed to expanding and upgrading WOW!'s networks with modern technology and infrastructure.

Fiber Expansion: Accelerated greenfield fiber deployments (WOW! already has 91,100 fiber passings in development)

Technology Adoption: Investment in new technologies for faster, more reliable service delivery

Competitive Pricing: Commitment to "competitive prices" for customers in service areas

Service Quality: Focus on "fast, reliable internet service and high-quality customer experience"

Service Areas Affected

WOW! operates in 7 states. Dealers in these markets should monitor:

• Service quality improvements and network upgrades

• Pricing changes and promotional offers

• New fiber availability and deployment timelines

• Competitive positioning against other providers

The Broadband Market Context: Why ISPs Are Struggling

Cable Industry Challenges

Major cable companies are losing significant broadband customers due to competition from fiber and fixed wireless access:

• Charter: Lost 117,000 broadband subscribers in Q2 2025

• Comcast: Lost 226,000 broadband subscribers in Q2 2025

• WOW!: Lost 3,900 HSD (high-speed data) subscribers in Q2 2025

Root Causes of Subscriber Losses

1. Competition from fiber providers offering faster speeds

2. Competition from fixed wireless access (FWA) like Verizon Home Internet

3. Aging copper/cable infrastructure unable to compete on performance

4. Inability to compete on speeds and pricing against newer competitors

Why Private Equity Is Buying

Opportunity: Undervalued assets with significant growth potential

Strategy: Invest in fiber to modernize networks and compete effectively against fiber-native and wireless competitors

Returns: Potential for significant returns through operational improvements and market expansion

Implications for Cell Phone Store Dealers

Broadband Market Dynamics

• Increased Competition: Private equity backing means WOW! will invest aggressively in fiber and compete harder for broadband customers

• Pricing Pressure: Expect competitive pricing as WOW! tries to retain and grow subscriber base

• Service Improvements: Better network quality and reliability in WOW! service areas

• Market Consolidation: Fewer independent ISPs, more private equity-backed operators

Opportunities for Dealers

1. Broadband Partnerships: Potential to partner with upgraded WOW! services for bundling

2. Bundle Opportunities: Possibility of bundling WOW! broadband with mobile services

3. Market Knowledge: Understanding WOW! service areas helps dealers position alternatives (Verizon Home Internet, T-Mobile Home Internet, etc.)

4. Customer Retention: As WOW! improves service, dealers can leverage this in customer conversations

Competitive Threats

1. Improved Competitor: WOW! will be better funded and more competitive with enhanced service offerings

2. Fiber Expansion: More fiber availability in WOW! markets means less need for wireless alternatives

3. Pricing Competition: Private equity backing means aggressive pricing to gain market share

What Dealers Should Monitor

Key Metrics to Track

1. WOW! Service Quality: Monitor improvements in speed, reliability, and availability

2. Fiber Expansion: Track where WOW! deploys fiber (91,100+ passings planned)

3. Pricing Changes: Watch for promotional pricing or rate changes

4. Service Area Coverage: Note which neighborhoods get fiber upgrades first

5. Customer Satisfaction: Monitor customer feedback and complaints

Service Areas to Watch

WOW! operates in 7 states. If your store is in one of these markets, monitor closely:

• Service quality improvements and network upgrades

• Fiber deployment progress and timelines

• Competitive positioning against other providers

• Pricing strategies and promotional offers

Strategic Recommendations for Dealers

1. Understand Your Local Market

• Determine if WOW! operates in your service area

• Map WOW! customer concentration in your market

• Identify where fiber expansion is planned

2. Monitor Competitive Positioning

• Track WOW! pricing and promotions

• Monitor service quality improvements

• Watch for bundling opportunities (broadband + mobile)

3. Prepare Alternative Offerings

• Ensure you understand Verizon Home Internet options

• Know T-Mobile Home Internet availability and pricing

• Be ready to position alternatives if WOW! service improves

4. Explore Partnership Opportunities

• Contact WOW! about potential dealer/reseller programs

• Inquire about bundling broadband with mobile services

• Explore commission structures for broadband referrals

5. Customer Communication

• Educate customers about broadband options in your market

• Position yourself as a trusted advisor for connectivity solutions

• Bundle mobile + broadband where possible

The Broader Telecom Consolidation Trend

Why This Matters

This WOW! deal is part of a larger trend reshaping the telecom industry:

• Private equity firms consolidating smaller ISPs

• Creating larger regional operators through M&A

• Investing heavily in fiber infrastructure

• Competing with major carriers (Verizon, AT&T, Charter, Comcast)

Industry Perspective

"Private equity is on a rampage buying smaller ISPs in an endeavor to accumulate more and more to create larger companies to get economies of scale. There are only winners with transactions like this." — Roger Entner, Recon Analytics

What This Means Long-Term

1. Fewer Independent ISPs: Consolidation reduces number of independent operators

2. Better-Funded Competitors: Private equity backing means more aggressive competition

3. Fiber Expansion: Accelerated fiber deployment in underserved markets

4. Market Consolidation: Larger, more efficient regional operators emerge

5. Competitive Pressure: Increased competition for broadband customers

Action Items for Dealers

Immediate (This Month)

• ☐ Determine if WOW! operates in your service area

• ☐ Research WOW! customer concentration in your market

• ☐ Monitor WOW! announcements post-deal closure

• ☐ Review current broadband offerings you can promote

Short-Term (Next 3 Months)

• ☐ Contact WOW! about potential partnership/reseller opportunities

• ☐ Map fiber expansion plans in your service area

• ☐ Prepare competitive positioning against improved WOW! service

• ☐ Train staff on broadband market dynamics

Medium-Term (Next 6-12 Months)

• ☐ Monitor service quality improvements in WOW! markets

• ☐ Track pricing changes and promotional offers

• ☐ Evaluate bundling opportunities with broadband services

• ☐ Adjust competitive strategy based on WOW! investments

Bottom Line

WOW! going private to DigitalBridge and Crestview represents a significant shift in the broadband market. Private equity backing will accelerate fiber expansion, improve service quality, and increase competitive pressure in WOW!'s 7-state service area.

For cell phone store dealers, this means:

1. Monitor: Track WOW! service improvements and competitive positioning

2. Prepare: Ensure you understand alternative broadband options

3. Adapt: Adjust your competitive strategy as WOW! improves

4. Explore: Investigate partnership opportunities with upgraded WOW! services

5. Educate: Position yourself as a trusted advisor for connectivity solutions

The broadband market is consolidating, private equity is driving investment, and competition is intensifying. Dealers who understand these dynamics and adapt their strategies will be best positioned to capture market share and serve customers effectively.