Charter Shareholders Approve Merger with Liberty
Deal News | Feb 28, 2025 | EIN
Charter Communications and Liberty Corp. shareholders have approved a merger deal in which Charter will acquire all of Liberty's assets in an all-stock transaction. The deal, initially announced last November, sees Liberty Broadband Series A, B, and C common stockholders receiving 0.236 of a Charter share per Liberty share, with cash compensations for fractional shares. Liberty Broadband's key assets included its holdings in Charter Communications and GCI, a provider of data and managed services across Alaska. Preceding the acquisition's completion, Liberty will spin off GCI to its shareholders. This transaction encompasses strategic steps in Charter's expansive agenda, enhancing its service outreach exemplified by Spectrum Mobile's recent milestone of reaching 10 million mobile lines. Upon closing the deal, Charter will shoulder corporate tax liabilities, though will gain benefits from tax receivables if it exceeds $420 million.
Sectors
- Telecommunications
- Media and Broadcasting
Geography
- United States – The merger involves Charter Communications and Liberty Corp., both significant players in the US telecommunications and media markets, specifically mentioning operations in 41 states including Alaska.
Industry
- Telecommunications – This transaction involves major telecommunication companies, Charter Communications and GCI, representing significant operations and infrastructure in broadband, mobile, and managed services.
- Media and Broadcasting – Charter Communications, a significant player in video and cable services, is expanding its reach, impacting the media and broadcasting industry sector.
Financials
- $420 million – This is the threshold corporate tax liability above which Charter will gain tax receivable benefits after completing the acquisition.
- $4.7 billion – The amount invested by GCI in its network and facilities in Alaska over 45 years.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Charter Communications | Bidding Company | Company | An American telecommunications and mass media company providing services under its brand Spectrum. |
| Liberty Corp | Selling Company | Company | A corporate entity involved in the telecommunications sector, primarily owning Liberty Broadband and its subsidiary GCI. |
| Liberty Broadband | Selling Company | Company | A company holding a major stake in Charter and its subsidiary GCI, involved in this all-stock transaction with Charter. |
| GCI | Subsidiary | Company | A wholly-owned subsidiary of Liberty Broadband, providing telecommunications services throughout Alaska. |