CABO$6.22▼ 14.0%A court froze Cable One's Mega Broadband deal. The lender's case leans on Cable One's 10-Q
A federal judge froze Cable One's roughly $480 million purchase of the rest of Mega Broadband on Oct. 9, at a lender's request, court records show. The lender built much of its case on Cable One's own quarterly report.
KeyVex News··6 min readFact-checked against 10 public recordsKeyVex News··6 min readFact-checked against 10 public recordsCABO$6.22▼ 14.0%Close, Oct. 19. Prices from Tiingo.The short versionTap to readTap to close
- Under a 2024 deal, Cable One had to buy the 55% of Mega Broadband it did not own once its partners asked. They asked in January, and the closing was set for Oct. 9.
- The price, which Cable One estimated at about $480 million, comes from a formula on Mega Broadband's results to June 2025. By June 30, 2026, it had written its own 45% down to $31.8 million.
- Then CoBank, which says it is owed about $1.1 billion, sued. It calls the payment a fraudulent transfer: money paid out without reasonably equivalent value, by a company it calls insolvent.
- A judge froze the payment that afternoon. Cable One says CoBank's claims are wrong in law, and that it need not close while the order stands.
- An Oct. 14 order set a hearing for Oct. 22 at 2 p.m. and told both sides to be available to testify. Until the judge decides, the order stands.
The order: A lender, CoBank, sued Cable One in federal court in Manhattan on Oct. 9 to stop it paying about $480 million for the 55% of Mega Broadband Investments it does not own.Complaint The closing was set for that day.8-K That afternoon, Judge J. Paul Oetken barred Cable One from closing the purchase until the court rules on CoBank's request.TRO
The numbers: CoBank's complaint leans on Cable One's own quarterly report, its 10-Q.Complaint At June 30, Cable One carried the 45% of Mega Broadband it already owns at $31.8 million, after a $349.8 million write-down. It also booked a $426.0 million liability on its obligation to buy the rest.10-Q On Oct. 19, all of Cable One's stock was worth about $35 million, by KeyVex's math.Chart data
Why it matters: The price was fixed by a formula on Mega Broadband's results for the year to June 30, 2025. Cable One's own valuation of Mega Broadband has fallen since.10-Q A judge will now decide whether the block stays in place while CoBank's fraudulent-transfer claim goes forward. Cable One says CoBank's claims are "incorrect as a matter of law."Release
Cable One's stock in 2026Daily close, Jan. 2 to Oct. 19, 2026 ▼ 94.0%Show chartHide chart
- 1Jan. 2, 2026 GTCR-affiliated investors exercise their put. Cable One must now buy the 55% of Mega Broadband it does not own. It closes at $104.16.
- 2Aug. 7, 2026 First trading day after the second-quarter 10-Q. Filed after the close on Aug. 6, it writes the 45% stake down by $349.8 million, to $31.8 million, and books a $426.0 million liability against the put.
- 3Sept. 17, 2026 Cable One borrows $700 million on its revolver. On Sept. 17 and 18, "to increase cash on hand and preserve financial flexibility," its 8-K says.
- 4Oct. 2, 2026 The closing moves to Oct. 9. Cable One and GTCR's affiliates agree to push it back from Oct. 1.
- 5Oct. 9, 2026 CoBank sues; a judge freezes the purchase. The restraining order is signed at 4:43 p.m. Cable One closes at $11.14.
- 6Oct. 14, 2026 The judge sets a hearing for Oct. 22. The two sides could not agree on a schedule. Cable One closes at $9.60.
View the data (200 trading days)
| Date | Close | Day change |
|---|---|---|
| 2026-10-19 | $6.22 | −14.0% |
| 2026-10-16 | $7.23 | −14.6% |
| 2026-10-15 | $8.47 | −11.8% |
| 2026-10-14 | $9.60 | −18.2% |
| 2026-10-13 | $11.73 | +1.6% |
| 2026-10-12 | $11.55 | +3.7% |
| 2026-10-09 | $11.14 | −27.6% |
| 2026-10-08 | $15.38 | +16.4% |
| 2026-10-07 | $13.21 | +1.9% |
| 2026-10-06 | $12.97 | +15.3% |
| 2026-10-05 | $11.25 | −7.9% |
| 2026-10-02 | $12.21 | +17.9% |
| 2026-10-01 | $10.36 | −6.0% |
| 2026-09-30 | $11.02 | +0.8% |
| 2026-09-29 | $10.93 | −13.0% |
| 2026-09-28 | $12.57 | −14.2% |
| 2026-09-25 | $14.65 | −6.3% |
| 2026-09-24 | $15.63 | −1.3% |
| 2026-09-23 | $15.83 | −7.2% |
| 2026-09-22 | $17.06 | −5.3% |
| 2026-09-21 | $18.01 | +3.7% |
| 2026-09-18 | $17.37 | −4.1% |
| 2026-09-17 | $18.11 | −4.4% |
| 2026-09-16 | $18.94 | +1.7% |
| 2026-09-15 | $18.63 | −8.9% |
| 2026-09-14 | $20.44 | −4.1% |
| 2026-09-11 | $21.31 | −0.7% |
| 2026-09-10 | $21.47 | +1.6% |
| 2026-09-09 | $21.14 | −8.2% |
| 2026-09-08 | $23.03 | −9.6% |
| 2026-09-04 | $25.47 | −2.3% |
| 2026-09-03 | $26.06 | −8.6% |
| 2026-09-02 | $28.51 | +19.4% |
| 2026-09-01 | $23.87 | −12.8% |
| 2026-08-31 | $27.38 | +7.4% |
| 2026-08-28 | $25.50 | +13.4% |
| 2026-08-27 | $22.49 | −12.9% |
| 2026-08-26 | $25.83 | −1.9% |
| 2026-08-25 | $26.34 | +15.4% |
| 2026-08-24 | $22.83 | 0.0% |
| 2026-08-21 | $22.82 | −13.0% |
| 2026-08-20 | $26.22 | +1.1% |
| 2026-08-19 | $25.93 | −7.6% |
| 2026-08-18 | $28.07 | −6.1% |
| 2026-08-17 | $29.88 | −13.3% |
| 2026-08-14 | $34.48 | −5.0% |
| 2026-08-13 | $36.30 | +8.0% |
| 2026-08-12 | $33.61 | −0.8% |
| 2026-08-11 | $33.89 | −5.2% |
| 2026-08-10 | $35.74 | −4.2% |
| 2026-08-07 | $37.32 | −16.1% |
| 2026-08-06 | $44.48 | +2.6% |
| 2026-08-05 | $43.37 | −3.3% |
| 2026-08-04 | $44.84 | 0.0% |
| 2026-08-03 | $44.83 | +12.1% |
| 2026-07-31 | $39.99 | +1.1% |
| 2026-07-30 | $39.56 | −5.5% |
| 2026-07-29 | $41.85 | −4.5% |
| 2026-07-28 | $43.82 | +10.8% |
| 2026-07-27 | $39.54 | +5.1% |
| 2026-07-24 | $37.63 | +1.2% |
| 2026-07-23 | $37.19 | −6.2% |
| 2026-07-22 | $39.65 | +5.4% |
| 2026-07-21 | $37.63 | −4.6% |
| 2026-07-20 | $39.43 | +0.3% |
| 2026-07-17 | $39.30 | −5.3% |
| 2026-07-16 | $41.49 | +3.5% |
| 2026-07-15 | $40.10 | −6.8% |
| 2026-07-14 | $43.01 | +13.4% |
| 2026-07-13 | $37.93 | +4.8% |
| 2026-07-10 | $36.19 | +2.6% |
| 2026-07-09 | $35.27 | −13.7% |
| 2026-07-08 | $40.87 | −4.1% |
| 2026-07-07 | $42.63 | −9.2% |
| 2026-07-06 | $46.96 | −4.0% |
| 2026-07-02 | $48.91 | −8.2% |
| 2026-07-01 | $53.26 | +0.3% |
| 2026-06-30 | $53.11 | −0.8% |
| 2026-06-29 | $53.56 | +1.3% |
| 2026-06-26 | $52.87 | +30.1% |
| 2026-06-25 | $40.65 | −10.2% |
| 2026-06-24 | $45.28 | +3.5% |
| 2026-06-23 | $43.75 | +6.9% |
| 2026-06-22 | $40.93 | −0.1% |
| 2026-06-18 | $40.99 | −4.8% |
| 2026-06-17 | $43.07 | −9.0% |
| 2026-06-16 | $47.33 | +1.9% |
| 2026-06-15 | $46.46 | −1.1% |
| 2026-06-12 | $47.00 | +13.1% |
| 2026-06-11 | $41.57 | −3.5% |
| 2026-06-10 | $43.07 | +2.6% |
| 2026-06-09 | $41.96 | −1.0% |
| 2026-06-08 | $42.40 | −3.2% |
| 2026-06-05 | $43.82 | −5.8% |
| 2026-06-04 | $46.51 | −3.2% |
| 2026-06-03 | $48.06 | −5.2% |
| 2026-06-02 | $50.72 | −1.2% |
| 2026-06-01 | $51.34 | −2.3% |
| 2026-05-29 | $52.55 | −7.0% |
| 2026-05-28 | $56.52 | +3.3% |
| 2026-05-27 | $54.74 | +5.1% |
| 2026-05-26 | $52.10 | −0.3% |
| 2026-05-22 | $52.28 | +9.6% |
| 2026-05-21 | $47.68 | +1.2% |
| 2026-05-20 | $47.10 | −0.8% |
| 2026-05-19 | $47.49 | −2.6% |
| 2026-05-18 | $48.78 | 0.0% |
| 2026-05-15 | $48.77 | −4.6% |
| 2026-05-14 | $51.13 | −2.2% |
| 2026-05-13 | $52.27 | +3.6% |
| 2026-05-12 | $50.43 | −10.0% |
| 2026-05-11 | $56.04 | −10.2% |
| 2026-05-08 | $62.39 | +2.7% |
| 2026-05-07 | $60.77 | +9.1% |
| 2026-05-06 | $55.72 | −12.0% |
| 2026-05-05 | $63.30 | −2.3% |
| 2026-05-04 | $64.79 | −13.6% |
| 2026-05-01 | $75.01 | −18.0% |
| 2026-04-30 | $91.49 | +1.6% |
| 2026-04-29 | $90.04 | −9.2% |
| 2026-04-28 | $99.11 | −0.7% |
| 2026-04-27 | $99.79 | −3.1% |
| 2026-04-24 | $103.00 | −10.3% |
| 2026-04-23 | $114.78 | −0.3% |
| 2026-04-22 | $115.13 | −1.6% |
| 2026-04-21 | $116.96 | +0.8% |
| 2026-04-20 | $116.06 | +7.9% |
| 2026-04-17 | $107.52 | +0.1% |
| 2026-04-16 | $107.40 | +12.0% |
| 2026-04-15 | $95.88 | +3.0% |
| 2026-04-14 | $93.11 | −4.2% |
| 2026-04-13 | $97.19 | +5.8% |
| 2026-04-10 | $91.83 | −1.3% |
| 2026-04-09 | $93.08 | +2.4% |
| 2026-04-08 | $90.91 | −1.8% |
| 2026-04-07 | $92.61 | −3.9% |
| 2026-04-06 | $96.37 | −0.4% |
| 2026-04-02 | $96.76 | +8.0% |
| 2026-04-01 | $89.56 | −1.8% |
| 2026-03-31 | $91.21 | −3.8% |
| 2026-03-30 | $94.83 | −0.4% |
| 2026-03-27 | $95.21 | +0.1% |
| 2026-03-26 | $95.10 | −1.2% |
| 2026-03-25 | $96.24 | +5.3% |
| 2026-03-24 | $91.38 | −2.5% |
| 2026-03-23 | $93.73 | −0.8% |
| 2026-03-20 | $94.44 | −3.0% |
| 2026-03-19 | $97.32 | +2.3% |
| 2026-03-18 | $95.11 | −11.1% |
| 2026-03-17 | $107.00 | −0.7% |
| 2026-03-16 | $107.72 | −4.7% |
| 2026-03-13 | $113.04 | +0.8% |
| 2026-03-12 | $112.12 | −2.0% |
| 2026-03-11 | $114.41 | +11.1% |
| 2026-03-10 | $102.94 | −5.4% |
| 2026-03-09 | $108.79 | −2.3% |
| 2026-03-06 | $111.33 | +1.2% |
| 2026-03-05 | $109.96 | −4.7% |
| 2026-03-04 | $115.41 | +5.8% |
| 2026-03-03 | $109.09 | +7.9% |
| 2026-03-02 | $101.14 | +5.4% |
| 2026-02-27 | $95.95 | +5.6% |
| 2026-02-26 | $90.90 | 0.0% |
| 2026-02-25 | $90.92 | −3.4% |
| 2026-02-24 | $94.12 | −5.8% |
| 2026-02-23 | $99.91 | −5.1% |
| 2026-02-20 | $105.32 | +0.1% |
| 2026-02-19 | $105.18 | −8.1% |
| 2026-02-18 | $114.43 | +10.8% |
| 2026-02-17 | $103.29 | −9.1% |
| 2026-02-13 | $113.58 | +1.1% |
| 2026-02-12 | $112.35 | +1.3% |
| 2026-02-11 | $110.92 | +1.5% |
| 2026-02-10 | $109.26 | +11.1% |
| 2026-02-09 | $98.37 | −2.4% |
| 2026-02-06 | $100.75 | −0.1% |
| 2026-02-05 | $100.82 | +0.5% |
| 2026-02-04 | $100.29 | +11.0% |
| 2026-02-03 | $90.37 | +3.0% |
| 2026-02-02 | $87.70 | +8.3% |
| 2026-01-30 | $80.99 | +7.1% |
| 2026-01-29 | $75.65 | +3.9% |
| 2026-01-28 | $72.84 | −3.3% |
| 2026-01-27 | $75.30 | −4.5% |
| 2026-01-26 | $78.84 | −2.2% |
| 2026-01-23 | $80.65 | −3.2% |
| 2026-01-22 | $83.33 | −1.3% |
| 2026-01-21 | $84.43 | +1.0% |
| 2026-01-20 | $83.58 | −3.0% |
| 2026-01-16 | $86.15 | −4.8% |
| 2026-01-15 | $90.50 | −1.1% |
| 2026-01-14 | $91.55 | −1.5% |
| 2026-01-13 | $92.96 | −8.9% |
| 2026-01-12 | $102.01 | +3.8% |
| 2026-01-09 | $98.26 | −0.3% |
| 2026-01-08 | $98.57 | −3.5% |
| 2026-01-07 | $102.15 | −1.8% |
| 2026-01-06 | $103.99 | +3.6% |
| 2026-01-05 | $100.38 | −3.6% |
| 2026-01-02 | $104.16 |
Cable One closed at $112.85 on Dec. 31, 2025, and at $6.22 on Oct. 19, 2026. Source: Tiingo end-of-day closes, as traded, via KeyVex.
What Cable One agreed to buy
Cable One bought about 45% of Mega Broadband, known as MBI, in November 2020, with options on the rest. In December 2024 it paid $250 million upfront to rework the deal. Certain of MBI's other investors, affiliated with the private equity firm GTCR, already held a put: the right to make Cable One buy their 55%. The new terms let them use it from Jan. 1, 2026, with a closing no earlier than Oct. 1.10-QComplaint They exercised it on Jan. 2.10-Q
The price comes from a formula based on a multiple of MBI's adjusted EBITDA, a measure of operating profit, for the year to June 30, 2025, and on MBI's debt. For an Oct. 1 closing, Cable One estimated it at about $480 million. MBI would also bring about $920 million of term loans that mature in November 2027.10-Q
The stake Cable One already owns had been carried at $386.4 million at the end of 2025. It cut that value in the second quarter, citing MBI's financial performance and an updated forecast.10-Q The 10-Q calls the $426.0 million liability the option's fair value. It says Mega Broadband's estimated equity value is a significant input.10-Q
View the data
| Item | Millions of dollars | Note |
|---|---|---|
| Price for the other 55% (Put price, 10-Q estimate) | $480.0M | "Approximately $480 million," based on a closing on Oct. 1, 2026 (Form 10-Q for the quarter ended June 30, 2026) |
| Liability booked on the put (June 30, 2026) | $426.0M | MBI option liability, $425,970 thousand (Form 10-Q balance sheet) |
| Cable One's own 45% of MBI (Carrying value, June 30, 2026) | $31.8M | $31,817 thousand, after a $349.8 million impairment; $386,402 thousand at Dec. 31, 2025 (Form 10-Q, note 5) |
| All of Cable One's stock (Market value, Oct. 19, KeyVex's math) | $35.3M | 5,673,925 shares outstanding at July 31, 2026, times the $6.22 close on Oct. 19 |
The price is Cable One's estimate for an Oct. 1, 2026 closing. The liability and the carrying value are as of June 30, 2026. The market value is KeyVex's math: 5,673,925 shares times the Oct. 19 close of $6.22. Sources: Cable One Form 10-Q; Schedule 13D/A filed Oct. 19, 2026; Tiingo closes via KeyVex.
What CoBank says
CoBank, a federally chartered bank in the Farm Credit System, says it holds about $1.1 billion of Cable One's secured loans. It says Cable One owes more than $2 billion to other lenders.Complaint
Setting that liability against the price, CoBank's complaint says Cable One "has told the investing public" that the stake it is about to buy for about $480 million "is worth, at most, about $54 million." That figure is CoBank's subtraction, not one Cable One states. It calls Cable One "currently insolvent based on standard valuation methodologies."Complaint
Under the Arizona and Delaware fraudulent-transfer laws CoBank cites, creditors can undo a payment a company makes without getting reasonably equivalent value when it is insolvent, is made insolvent by the payment, or is left with too little capital. CoBank says the payment meets those tests and asks the court to bar it for good.Complaint
Cable One's 10-Q said it believed its cash, room on its revolving credit facility (a standing line of credit) and cash from operations would be enough to cover the price.10-Q On Sept. 17 and 18 it drew $700 million under that $1.25 billion facility "to increase cash on hand and preserve financial flexibility," its 8-K says.8-K That was the amount still undrawn at June 30.10-Q
What Cable One says
The order was entered before Cable One had any hearing or court appearance, the company said in an Oct. 12 news release. It said it is not obligated to close while a legal restraint is in effect. It also said it had made "substantial progress" on financing with GTCR, some existing lenders and private lenders, meant to address $2.45 billion of current obligations and nearest-term debt maturities. That financing depends on resolving the order, and no definitive agreements have been signed, it said.Release
Cable One told the court that "CoBank does not allege – nor could it – that Cable One has missed an interest or principal payment," Light Reading reported on Oct. 14.Light Reading In an Oct. 13 filing, Cable One accused CoBank of a campaign to "torpedo" the GTCR deal and asked that CoBank post a $480 million bond if the order stands, Light Reading reported.Light Reading
Defendant is temporarily restrained and enjoined from executing the MBI Put Closing
What happens next
Judge Oetken signed the order sitting in the court's Part One. On Oct. 13, Judge Victor Marrero, to whom the case is assigned, told the two sides to agree on a schedule.Order They could not. On Oct. 14 he set the hearing for Oct. 22 at 2 p.m. He ordered both sides to be present and available to testify.Order The order stays in effect until the judge assigned to the case vacates or changes it.TRO
Also in the filings: Donald Graham's stake falls below 5%
Nothing in these filings ties them to the court case. Donald Graham is chairman emeritus of Graham Holdings, which spun Cable One off in 2015.13D/ADEF 14A In an Oct. 14 filing, he said he intends to sell some or all of his Cable One shares in the near term.13D/A He and trusts whose shares his filings report sold shares on Oct. 13, 14, 15, 16 and 19, at weighted average prices from $13.02 down to $6.07. His holdings fell from 390,361 shares, 6.88%, as of Oct. 14, to 282,882 shares, 4.99%, as of Oct. 19. The Oct. 19 amendment says he stopped owning more than 5% that day, and calls itself his exit filing.13D/A
What to watch
Hearing on CoBank's request and Cable One's motion to dissolve the order, 2 p.m., Southern District of New York, as set by the Oct. 14 order.
Maturity of MBI's term loans, about $920 million, which Cable One said would come with the purchase.
Final scheduled maturity of Cable One's revolving credit facility, per its Sept. 22 8-K.
The paper trail
Cable One's SEC filings and the court record from Aug. 6 through Oct. 19, 2026. SEC times are when EDGAR accepted each filing; court times are as the order shows.
| Filed (ET) | Form | Filer | What it shows |
|---|---|---|---|
| Aug. 6, 5:14 p.m. | 10-Q | Cable One | $349.8 million write-down of the MBI stake, to $31.8 million; $426.0 million liability on the put; a price of about $480 million. |
| Sept. 22, 5:01 p.m. | 8-K | Cable One | Borrowed $700 million on its revolving credit facility on Sept. 17 and 18. |
| Oct. 2, 9:16 a.m. | 8-K | Cable One | The MBI closing moves from Oct. 1 to Oct. 9. Talks with some potential investors on financing have concluded. |
| Oct. 9 | Complaint | CoBank | Asks the court to stop the payment as a fraudulent transfer. |
| Oct. 9, 4:43 p.m. | Order | Judge Oetken | Temporary restraining order: the MBI closing is barred pending a hearing. |
| Oct. 13 | Order | Judge Marrero | Tells the parties to agree on a schedule and a hearing date. |
| Oct. 14 | Order | Judge Marrero | Sets the hearing for Oct. 22 at 2 p.m. |
| Oct. 14, 9:55 p.m. | 13D/A | Donald E. Graham | Intends to sell some or all of his shares in the near term. 6.88%. |
| Oct. 19, 9:48 p.m. | 13D/A | Donald E. Graham | 4.99%. Exit filing. |
Sources
15 sources, 10 of them public records
Public records
- Cable One, Inc., Form 10-Q for the quarter ended June 30, 2026SEC EDGAR · Aug. 6, 2026
- Cable One, Inc., Form 8-K (borrowings under the revolving credit facility)SEC EDGAR · Sept. 22, 2026
- Cable One, Inc., Form 8-K (extension of the MBI closing date)SEC EDGAR · Oct. 2, 2026
- CoBank, ACB v. Cable One, Inc., No. 1:26-cv-08935, complaint (docket no. 1)U.S. District Court, S.D.N.Y., via CourtListener · Oct. 9, 2026
- Order to show cause for temporary restraining order (docket no. 13)U.S. District Court, S.D.N.Y., via CourtListener · Oct. 9, 2026
- Order on briefing schedule and hearing date (docket no. 27)U.S. District Court, S.D.N.Y., via CourtListener · Oct. 13, 2026
- Order setting the Oct. 22 hearing (docket no. 31)U.S. District Court, S.D.N.Y., via CourtListener · Oct. 14, 2026
- Donald E. Graham, Schedule 13D/A (Amendment No. 6) on Cable OneSEC EDGAR · Oct. 14, 2026
- Donald E. Graham, Schedule 13D/A (Amendment No. 7) on Cable OneSEC EDGAR · Oct. 19, 2026
- Cable One, Inc., definitive proxy statement (DEF 14A)SEC EDGAR · April 7, 2026
Reporting
- "Cable One Provides Update on the Pending Purchase of Mega Broadband" (Cable One news release, Business Wire, as published)Finviz · Oct. 12, 2026
- "Cable One urges judge to unblock Mega Broadband deal"Light Reading · Oct. 13, 2026
- "Cable One-Mega Broadband deal stays in limbo, but for how long?"Light Reading · Oct. 14, 2026
Data
- End-of-day prices for CABO, and for SPY and QQQ on the chart (Tiingo)KeyVex · through Oct. 19, 2026
- The chart's Filings layer: KeyVex's insider trade, Congress trade and 8-K records for CABOKeyVex · through Oct. 19, 2026
How we got these numbers
- Prices are end-of-day closes as traded, not adjusted for dividends. The S&P 500 and Nasdaq 100 lines follow SPY and QQQ, also as traded, rebased to Cable One's close at the start of the range shown. The Filings switch shows the filing markers from KeyVex's Cable One stock page, a selection of filings: not every filing, and not only those tied to this story.
- Cable One's market value is KeyVex's math: 5,673,925 shares outstanding as of July 31, 2026, the count Donald Graham's Oct. 19 filing uses, times the $6.22 close on Oct. 19, about $35.3 million. The share count may have changed since July 31.
- The $54 million figure is CoBank's, from its complaint: the roughly $480 million price less the $426.0 million liability. Cable One's 10-Q gives the liability as the option's fair value, which it says effectively represents its intrinsic value as of June 30, 2026.
- Graham's holdings are as his Schedule 13D/A filings state them, including shares held in trusts for which he shares voting and investment power; he disclaims beneficial interest in some of them. The weighted average prices are the filings' own.