XML 42 R30.htm IDEA: XBRL DOCUMENT v3.25.1
EQUITY INVESTMENTS (Tables)
 3 Months Ended
Mar. 31, 2025
Investments, All Other Investments [Abstract]  
Schedule of Carrying Value of the Company's Equity Investments
The carrying value of the Company's equity investments consisted of the following (dollars in thousands):
March 31, 2025December 31, 2024
Ownership PercentageCarrying ValueOwnership PercentageCarrying Value
Cost Method Investments
MetroNet(1)
<10%$7,000 <10%$7,000 
Point Broadband(2)
<10%42,623 <10%42,623 
Visionary(3)
<10%8,822 <10%8,822 
Ziply(4)
<10%50,000 <10%50,000 
Others<10%7,696 <10%14,967 
Total cost method investments$116,141 $123,412 
Equity Method Investments
Clearwave Fiber(5)
~57%(6)
$126,031 
~57%(6)
$180,882 
MBI(7)
~45%402,266 ~45%405,810 
Nextlink~22%107,114 ~22%105,708 
Total equity method investments$635,411 $692,400 
Total equity investments$751,552 $815,812 
(1)MetroNet Systems, LLC, a fiber internet service provider ("MetroNet").
(2)Point Broadband Holdings, LLC, a fiber internet service provider ("Point Broadband").
(3)Visionary Communications, Inc., an internet service provider ("Visionary").
(4)Northwest Fiber Holdco., LLC, a fiber internet service provider ("Ziply").
(5)The Company does not have a controlling financial interest and does not consolidate Clearwave Fiber for financial reporting purposes but accounts for its interest under the equity method of accounting as the entity’s governance arrangements require certain of the designees of the other unit holders to consent to all significant decisions.
(6)Represents the Company's percentage ownership of the total outstanding equity units in Clearwave Fiber. The Company's ownership interest in Clearwave Fiber is in the form of common equity units and the ownership interest in Clearwave Fiber of the unaffiliated third-party investors is in the form of convertible preferred equity units. The convertible preferred equity units held by the unaffiliated third-party investors are subject to a specified preferred return in relation to the common equity units held by the Company. As a result of the economic and other attributes of the various classes of equity units in Clearwave Fiber, the Company's percentage ownership of the total outstanding equity units in Clearwave Fiber may differ from its economic interest in Clearwave Fiber.
(7)The carrying value of the New MBI Net Option asset was $79.5 million and $84.1 million as of March 31, 2025 and December 31, 2024, respectively, and was included within other noncurrent assets in the condensed consolidated balance sheets. During the fourth quarter of 2024, the Company recorded a $111.7 million non-cash impairment charge to the carrying value of its MBI investment based on MBI's financial performance and updated forecast information. Refer to note 10 for further information on the New MBI Net Option.
Schedule of Equity Method Investments
Equity method investment income (losses), which increase (decrease) the carrying value of the respective investment, and which are recorded on a one quarter lag, along with other equity investment activity reflected in the condensed consolidated statements of operations and comprehensive income, were as follows (in thousands):
Three Months Ended March 31,
20252024
Equity Method Investment Income (Losses)
Clearwave Fiber(1)
$(54,851)$(21,721)
MBI(2)
(3,544)(315)
Nextlink
1,405 — 
Total$(56,990)$(22,036)
Other Income (Expense), Net
Old MBI Net Option fair value adjustment$— $(7,200)
New MBI Net Option fair value adjustment
$(4,670)$— 
Gain (loss) on sale of equity investment$3,199 $— 
Mark-to-market adjustments$58 $46 
(1)The amount for the three months ended March 31, 2025 includes $28.0 million related to non-cash impairment charges recorded by Clearwave Fiber.
(2)The Company identified a $186.6 million difference between the fair values of certain of MBI’s finite-lived intangible assets and the respective carrying values recorded by MBI, of which $84.0 million was attributable to the Company’s 45% pro rata portion. The Company is amortizing its share on an accelerated basis over the lives of the respective assets. For the three months ended March 31, 2025, the Company recognized $1.5 million of its proportionate share of MBI’s net loss and $2.1 million of its proportionate share of basis difference amortization. For the three months ended March 31, 2024, the Company recognized $2.2 million of its proportionate share of MBI's net income and $2.5 million of its proportionate share of basis difference amortization.