Liberty Broadband Corporation (NASDAQ: LBRDA) disclosed in a recently filed 8-K report the entry into a definitive Agreement and Plan of Merger with Charter Communications, Inc. The agreement involves the acquisition of Liberty Broadband by Charter in an all-stock transaction. Pursuant to this agreement, Liberty Broadband shareholders will receive 0.236 shares of Charter common stock for each share of Liberty Broadband common stock held. In addition, Liberty Broadband preferred stockholders will receive one share of newly issued Charter preferred stock per Liberty Broadband preferred stock held.
The key aspects of the Agreement include the anticipated GCI business spin-off by Liberty Broadband prior to the deal closure, making the GCI distribution taxable to Liberty Broadband and its shareholders. Charter is expected to bear the corporate-level tax liabilities resulting from the GCI Divestiture following the merger. The transaction is forecasted to be finalized on June 30, 2027, subject to customary closing conditions and completion of the GCI spin-off.
The acquisition plan includes Charter’s retirement of 45.6 million Liberty Broadband shares and the issuance of approximately 34.0 million shares to Liberty Broadband shareholders at closing. Charter intends to repurchase Charter shares from Liberty Broadband as necessary for timely payment of Liberty Broadband’s debt. Both companies’ boards have unanimously approved the transaction, subject to various approvals including Liberty Broadband shareholder votes.
In related news, the joint press release emphasized Charter’s market presence as a leading broadband connectivity and cable service provider, while GCI, a subsidiary of Liberty Broadband, has served Alaska as its largest communications provider. The closing timeline, proposed step-downs, and other governance-related amendments connected to the deal were also highlighted in the disclosure.
The acquisition, currently scheduled for June 30, 2027, is subject to the completion of customary closing conditions and the GCI spin-off, presenting an important milestone for Liberty Broadband, Charter, and their shareholders.
Investors in Liberty Broadband and Charter are encouraged to carefully review the upcoming registration statement on Form S-4 and joint proxy statement/prospectus for comprehensive information on the proposed transaction, including its benefits and risks.
Charter and Liberty Broadband have affirmed their commitment to updating shareholders promptly as further developments unfold.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Liberty Broadband’s 8K filing here.
Liberty Broadband Company Profile
Liberty Broadband Corporation engages in the communications businesses. The company’s GCI Holdings segment provides data, wireless, video, voice, and managed services to residential customers, businesses, governmental entities, educational, and medical institutions in Alaska under the GCI brand. Its Charter segment offers subscription-based Internet and video services, and mobile and voice services; and state-of-the-art residential and business services, which includes Spectrum Internet, TV, mobile and voice for small and medium-sized companies; Spectrum Business provides a suite of broadband products and services for businesses and government application; Spectrum Enterprise offers customized fiber-based solutions; Spectrum Reach provides advertising and production for the modern media landscape.
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