Charter to Acquire Liberty Broadband

WASHINGTON, Nov. 13, 2024 – Charter reached a deal to acquire Liberty Broadband in an all-stock deal, the companies announced Wednesday.

Liberty shareholders will receive 0.236 of a Charter share for each of their Liberty shares. Charter had initially proposed a 0.228 exchange rate in September, and Liberty countered with a 0.290 exchange rate offer.

The companies expect the deal to close on June 30, 2027. Both boards have given it the greenlight, but other shareholders will still need to vote and regulatory approvals might be necessary. John Malone, the cable billionaire who owns nearly half the voting power of Liberty, is in favor of the deal.

“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,” he said in a statement. “I look forward to that continued upside, and to holding Charter shares after the merger closing.”

Liberty itself already owns 45.6 million Charter shares – amounting to 26 percent of the company – which would be retired and replaced with a lower number of shares also issued to Liberty shareholders.

Liberty will also spin off its Alaskan telecom subsidiary GCI as part of the deal. Liberty reported 156,400 total broadband subscribers at the end of the third quarter. 

Charter, for its part, provides broadband to more than 30 million homes and businesses nationally. The cable giant has been shedding subscribers amid pressure from fiber and fixed wireless providers, and has been feeling the impact of the shuttered Affordable Connectivity Program. The company said it was closer to returning to subscriber growth last quarter.