Company: LBRDK
Filing Date: 2025-01-17
Form Type: PRER14A
Source: 0001140361-25-001417
Chunk: 135

Company: Liberty Broadband Corp
Filing Date: 2025-01-17
Form: PRER14A
Chunk 135
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 under a single brand, Spectrum, that now serves approximately 32 million customers. We are proud of what we have achieved together and grateful for the collaborative approach that has helped us to get here. As you have highlighted to us, Liberty Broadband has historically traded at a discount to net asset value, in part as a result of its holding company structure. In that vein, we are pleased to provide this non-binding proposal with respect to a combination of Charter with Liberty Broadband in an all-stock transaction as described below. We believe that this proposal represents a compelling opportunity for Liberty Broadband to simplify its structure and meaningfully reduce this discount, to provide greater value, certainty and ultimately greater liquidity to the Liberty Broadband shareholder. Liberty Broadband shareholders would receive 0.228 newly issued shares of Charter common stock for each share of Liberty Broadband common stock. This exchange ratio represents a premium of approximately 27% to the value of Liberty Broadband stock based on closing sale prices on September 13, 2024. This exchange ratio assumes that Liberty Broadband disposes of GCI prior to completion of the transaction. Alternatively, we are willing to discuss terms for a transaction that would include GCI. The foregoing proposal is predicated on, among other things, the following assumptions:

| • | The share count numbers that were provided in Liberty Broadband’s most recent public filings. |

| • | Commitments that, during the pendency of the transaction, the Liberty Broadband business (other than GCI) will operate in a steady state in all respects, and GCI will operate in the ordinary course consistent with past practice, subject only to efforts to separate GCI. |

| • | Liberty Broadband disposing of the GCI business prior to the combination, along with the associated debt, with such disposition for the benefit of Liberty Broadband shareholders to be effected through a sale or spin-off subject to further review. |

| • | The continuation of Charter’s buyback program, from time to time in Charter’s discretion and subject to customary blackout periods, as it has in the past, except that Liberty Broadband’s participation would be limited to a modest amount required to remain approximately cash flow breakeven. |

| • | The assumption or repayment by Charter of the net debt of Liberty Broadband at closing. |

| • | Our current governance arrangement with Liberty Broadband continuing until the closing, subject to certain modifications to ensure arms-length process going forward. |

Consistent with our mutual expectations concerning optimal timing for the transaction, while we