Discussion about this post

User's avatar
Perpetual Investing's avatar

Searchlight buyout offer at $4 a share (~$460mm implied market cap or ~$2.6bln EV). Obviously good news for the stock short-term but will be interesting to see what CNSL investors think; stock started the year ~$4, so this likely locks in a loss for most. I suspect most were looking at CNSL as a high risk bet with massive upside potential, so locking in at $4 isn't that exciting to them.

Offer makes sense for Searchlight but definitely aggressive - get control of business for $300mm more and direct how they recoup their investment (>$500mm with preferred accruing). Also mentioned they would invest more capital to fund the fiber build, hinting the build isn't currently fully funded..

https://www.sec.gov/Archives/edgar/data/1304421/000119312523099940/0001193125-23-099940-index.htm

Expand full comment
Jiawei's avatar

Interesting that Eric Zinterhofer of Searchlight bought Charter's stock from market roughly at end of last year (thinking emoji).

Expand full comment
3 more comments...

No posts