Liberty Broadband’s (LBRDA) Class A stock jumped by 25% to $76.35 on Tuesday after the company
made a counteroffer to Charter Communications regarding a merger proposal. On the other hand,
Charters shares dipped by around 1%. Before this news Liberty Broadband (LBRDA) had seen a drop of
70% from its peak in 2021.
The proposal from Liberty Broadband (LBRDA) unveiled on Monday suggests swapping 0.29 shares of
Charters Class A stock for each Liberty share which values Liberty’s shares at over $96 based on Charters
closing price on Monday. This marks an improvement compared to Charters initial offer of 0.228 shares
per Liberty share.
Greg Maffei, the CEO of Liberty Broadband (LBRDA) mentioned that the merger would streamline the
structure enhance trading liquidity and remove Liberty Broadbands (LBRDA) governance rights over
Charter. Furthermore, Charter would take over or refinance Liberty Broadbands (LBRDA) debt and
preferred stock.
The deal is expected to be finalized by June 30, 2027 pending approval, from Liberty Broadbands
(LBRDA) independent investors.