Liberty Broadband Corporation (LBRDA, LBRDK) shares experienced a significant surge on Tuesday following the announcement of a counterproposal to Charter Communications (CHTR). This counterproposal outlines the terms of a proposed merger between the two companies, aiming for a tax-free all-stock transaction.
Under the proposed terms, Liberty Broadband shareholders would receive 0.2900 shares of Charter Class A common stock for each share they hold. Additionally, Charter would assume or refinance Liberty Broadband’s outstanding debt and preferred stock before the merger’s completion. The proposed closing date is set for June 30, 2027, or an earlier date if mutually agreed upon by both parties.
Liberty Broadband’s president and CEO, Greg Maffei, highlighted the benefits of the proposed transaction, stating that it would streamline the corporate structure between Charter and Liberty Broadband. This simplification would lead to improved trading liquidity and eliminate Liberty Broadband’s existing governance rights. The certainty of a future transaction would provide clarity for shareholders and continue the strong partnership between the two companies in the meantime.
The news of the counterproposal sent Liberty Broadband shares soaring, with over 1.3 million shares traded on Tuesday. By the end of the trading session, LBRDA shares had closed at $76.87, marking a 28.39% increase. This significant price action reflects investor optimism regarding the proposed merger and its potential benefits.
