Company: LBRDK
Filing Date: 2025-01-10
Form Type: PRER14A
Source: 0001140361-25-000778
Chunk: 113

Company: Liberty Broadband Corp
Filing Date: 2025-01-10
Form: PRER14A
Chunk 113
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 Charter’s results of operations, financial condition, and liquidity following the completion of the combination.

Charter may fail to realize all of the anticipated benefits of the combination or those benefits may take longer to realize than expected.

The full benefits of the combination may not be realized as expected or may not be achieved within the anticipated time frame, or at all. Failure to achieve the anticipated benefits of the combination could cause dilution to the earnings per share of Charter, decrease or delay the expected accretive effect of the combination, and negatively impact the price of Charter common stock. In addition, there may be liabilities that Charter underestimated or did not discover in the course of performing its due diligence investigation of Liberty Broadband.

After the combination is completed, Liberty Broadband’s governance rights with respect to Charter will terminate.

If the combination is completed, the existing stockholders agreement, which sets forth, among other things, certain of Liberty Broadband’s and A/N’s governance rights with respect to Charter, will terminate with respect to Liberty Broadband. The stockholders and letter agreement amendment provides that, prior to the effective time, Charter, Liberty Broadband and A/N intend to discuss appropriate changes to the governance arrangements of Charter and the existing stockholders agreement, with such changes, if any, that are agreed by the parties and approved in accordance with Charter’s applicable organizational documents and the existing stockholders agreement to take effect upon the completion of the combination. Such changes are expected to give effect to the consummation of the combination, including to reflect that Liberty Broadband will no longer be a stockholder of Charter upon such consummation.

The Charter certificate of incorporation contains an exclusive forum provision, which could limit its stockholders’ ability to obtain a favorable judicial forum for disputes with Charter or its directors, officers or other employees.

In the combination, stockholders of Liberty Broadband will become stockholders of Charter and, although their rights as stockholders will continue to be governed by Delaware law, they will also be governed by the organizational documents of Charter, which are different from Liberty Broadband’s. The rights associated with Charter Class A common stock are different from the rights associated with Liberty Broadband common stock. For example, unlike the provisions of the Liberty Broadband certificate of incorporation, the Charter certificate of incorporation provides that unless Charter consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of Charter, (ii) any action asserting a claim of breach of a fiduciary duty