Company: LBRDK
Filing Date: 2025-01-17
Form Type: PRER14A
Source: 0001140361-25-001417
Chunk: 298

Company: Liberty Broadband Corp
Filing Date: 2025-01-17
Form: PRER14A
Chunk 298
---
 no gain or loss (other than, for the avoidance of doubt, gain or loss recognized on the receipt of or distribution of property other than Charter capital stock) will be recognized by Liberty Broadband on the deemed exchange of its assets for Charter capital stock in the combination under Sections 361(a) or 361(b) of the Code. These conditions are not waivable after the effective date of the registration statement on Form S-4 of which this joint proxy statement/prospectus forms a part. The opinions referenced above will be based on representations made by Liberty Broadband and Charter and on customary factual assumptions, as well as certain covenants and undertakings of Liberty Broadband and Charter. If any of such representations, assumptions, covenants or undertakings is or becomes incorrect, incomplete, or inaccurate or is otherwise violated, or if the facts upon which the opinions described above are based are materially different from the facts that exist at the time of the combination, the validity of such opinions may be affected, and the U.S. federal income tax consequences of the combination could differ materially from those described below. In addition, neither of the opinions described above will be binding on the IRS or any court. Liberty Broadband and Charter have not sought and will not seek any ruling from the IRS regarding any matters relating to the combination. There can be no assurance that the IRS will not assert, or that a court would not sustain, a position contrary to any of the conclusions set forth below.

Liberty Broadband and Charter intend to take the position, for U.S. federal income tax purposes, that the distribution of stock of GCI spinco to holders of shares of Liberty Broadband common stock pursuant to the GCI divestiture and the combination are, together, part of a “plan of reorganization” within the meaning of the Code and applicable Treasury regulations. This position is not dispositive with respect to the U.S. federal income tax treatment of the combination or the GCI divestiture.

It is possible that the IRS could assert that the stock of GCI spinco received by a U.S. holder should be treated as a separate distribution contrary to the position taken by Liberty Broadband and Charter. If such a position were asserted and sustained, such a distribution may be taxable as a dividend to such U.S. holder to the extent of (i) Liberty Broadband’s current earnings and profits for the taxable year in which the GCI divestiture occurs and (ii) Liberty Broadband’s accumulated earnings and profits.