News
Charter Communications has announced an all-stock transaction has been agreed to for the purpose of acquiring Liberty Broadband.
By: Brad Randall, Broadband Communities
Greg Maffei, the president and CEO of Liberty Broadband, said he’ll be stepping down from his role at the end of this after news of agreed upon terms for Charter Communications to acquire Liberty Broadband.
Maffei called the news a milestone during his leadership of the company.
In comments included with an announcement from Charter, Maffei said the deal will simplify Liberty’s corporate structure.
According to a summary of Liberty’s operations, the company’s assets primarily consist of interest in Charter and its subsidiary GCI, described as Alaska’s largest communications provider.
GCI to become independent
“In connection with the transaction, we expect GCI will become an independent public company prior to close,” Maffei said.
The agreement, subject to regulatory approval, would decrease the number of Charter’s outstanding shares by 11.5 million, Charter’s Nov. 13 announcement stated.
Liberty also has $2.6 billion of unpaid debt that will be repaid prior to closing or assumed by Charter.
Chris Winfrey, the president and CEO of Charter, said he’s grateful for Liberty’s strategic partnership, which has existed since 2013.
John Malone, the chairman of Liberty Broadband, said the deal will rationalize Liberty’s trading discount and provide enhanced liquidity to the entity’s shareholders.
“The transaction closing timeline reflects my belief in Charter’s operating strategy under the excellent leadership of Chris Winfrey and team and the value creation opportunity for both Charter and Liberty shareholders,” Malone said. “I look forward to that continued upside, and to holding Charter shares after the merger closing.”
In the deal, Liberty Broadband has agreed to “spin off” its GCI business with a distribution to stockholders prior to closing.
Additionally, holders of Liberty Broadband common stock will receive 0.236 of a share of Charter common stock per share of Liberty Broadband common stock held, the release explained.
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