Charter Communications is exploring a possible merger with John Malone’s Liberty Broadband, according to a statement released by one of the companies this week
Late Monday evening, Liberty Broadband informed shareholders that it had submitted a counter-proposal to the Special Committee of Charter’s Board of Directors after receiving an “initial merger proposal sent by the Charter Special Committee.”
The initial merger offer was sent from Charter on September 15, according to a letter that Liberty included in a filing made with the U.S. Securities and Exchange Commission. The letter was labeled “Strictly Confidential,” according to a copy reviewed by The Desk. A spokesperson for Charter declined to comment.
In Liberty Broadband’s counter-proposal, the company offered a situation by which Charter would “assume or refinance Liberty Broadband’s debt at or prior to closing as well as Liberty Broadband’s outstanding preferred stock.”
The merger would effectively combine two publicly-traded broadband players through which Malone is involved. GCI Communications, Liberty Broadband’s wholly-owned telecom, provides broadband, cable TV and wireless services in Alaska. Liberty Broadband also owns 26 percent of Charter, which offers broadband, cable TV and Internet service under the Spectrum brand in more than 40 states, and resells access to Verizon’s wireless network through Spectrum Mobile.
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“Liberty’s proposed transaction would rationalize the dual corporate structure between Charter and Liberty Broadband, providing enhanced trading liquidity and removing Liberty Broadband’s existing governance rights,” Greg Maffei, the President & CEO of Liberty Broadband, said in a statement. “The certainty of a future transaction would provide clarity to our shareholders and continue our strong partnership with Charter in the interim. In GCI, Charter would be acquiring an attractive business that is the leading connectivity platform in Alaska with significant opportunity for future value creation. We look forward to reaching a mutually agreed upon transaction for the benefit of all stakeholders.”
Liberty Broadband has proposed a closing date of June 30, 2027, though the deal may close earlier if regulators approve the transaction and both sides agree to accelerate the timeline. The deal would also be subject to the approval of Charter’s Board of Directors and Liberty Broadband shareholders beyond Malone.
Between now and then, Liberty Broadband and GCI will “operate in the ordinary course of business, subject to the terms of the definitive transaction agreements,” Liberty Broadband said.
