Liberty Broadband shares rise after counterproposal to Charter Communications merger offer

Shares of billionaire cable mogul John Malone's Liberty Broadband (LBRDK) jumped Tuesday after the communications provider submitted a counteroffer to a merger proposal from Charter Communications (CHTR).

Liberty Broadband, owner of Alaska cable operator GCI, owns a 26 percent stake in Charter, which offers Internet, cable television and mobile services under the Spectrum brand. The counteroffer provides for an all-stock transaction in which Liberty investors would receive 0.29 Class A Charter Shares for each Liberty Share they own. Last week, Charter offered 0.228 shares for each Liberty share.

The deal also calls for Charter to assume or refinance Liberty's debt and outstanding preferred stock at or prior to closing. Liberty said it will operate “in the normal course of business” during the transition period and recommended a closing date of June 30, 2027 or earlier.

Liberty CEO Greg Maffei said the counteroffer will benefit both companies and “streamline the dual corporate structure between Charter and Liberty Broadband by providing greater trading liquidity and removing Liberty Broadband's existing management rights.”

“We are not commenting on the details of the negotiations,” a Charter spokesman said in an email to Investopedia.

Liberty Broadband shares rose 25% to $76.37 midday Tuesday after the news broke, but despite Tuesday's gains, they have lost more than 5% so far in 2024. Charter Communications shares fell 2.9% to $322.18 on Tuesday and are down more than 17% year-to-date.

UPDATE— This story has been updated with charter commentary and the latest share prices.