01:54 PM EST, 11/13/2024 (MT Newswires) -- Charter Communications ( CHTR ) has agreed to acquire Liberty Broadband ( LBRDA ) in an all-stock deal, the companies said Wednesday.

Charter is a broadband connectivity company and cable operator that owns the Spectrum brand. Liberty operates and owns interests in various communication businesses. Its main assets comprise a stake in Charter and its GCI unit, a communications provider in Alaska.

Under the terms of the deal, each holder of Liberty's series A, B and C common shares will receive 0.236 of a Charter common share for every share held. Each Liberty's series A preferred share will be exchanged with one share of newly issued Charter preferred stock.

Liberty will spin off the GCI business by way of a distribution to its stockholders before the closing of its deal with Charter. The deal is expected to be completed June 30, 2027, subject to the closing of the GCI spin-off, according to a joint statement.

Charter expects to retire roughly 45.6 million shares owned by Liberty and issue 34 million shares to Liberty shareholders at the deal's closing. Liberty has $2.6 billion of existing debt that will be repaid before closing or assumed by Charter, as well as $180 million of preferred equity that will become Charter's.

Charter shares were up 5.7% in Wednesday afternoon trade, while Liberty's series A and C common shares fell around 3% each.

"This transaction simplifies our corporate structure and allows our shareholders to participate in Charter's upside through direct ownership of the equity," said Liberty CEO Greg Maffei, who will step down at the end of the year. "I look forward to continuing as a director of Charter and a meaningful shareholder."

Liberty Broadband ( LBRDA ) was spun off from Liberty Media in 2014. Liberty Media (LLYVA, LLYVK) separately announced plans on Wednesday to split off Liberty Live Group into a separate company.

Maffei, Liberty Chairman John Malone and certain related holders have agreed to vote Liberty Broadband ( LBRDA ) shares in favor of the deal.

Earlier this month, Charter's third-quarter results rose year over year and topped market estimates, buoyed by double-digit revenue gains in residential mobile services and advertising.

Price: 415.22, Change: +23.22, Percent Change: +5.92