Company: LBRDK
Filing Date: 2025-01-22
Form Type: DEFM14A
Source: 0001140361-25-001609
Chunk: 175

Company: Liberty Broadband Corp
Filing Date: 2025-01-22
Form: DEFM14A
Chunk 175
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 that is generally tax-free to Liberty Broadband and the Liberty Broadband stockholders, except to the extent of any income, gain or loss recognized with respect to the receipt or distribution of property other than Charter capital stock (including stock of GCI spinco and cash in lieu of fractional shares), and that the combination is conditioned on the receipt of an opinion from Skadden, Liberty Broadband’s special tax counsel, and from Wachtell Lipton, counsel to the Charter special committee, that, in each case, based on certain representations and assumptions, and subject to certain limitations and qualifications, the combination will qualify as a “reorganization,” as described in more detail in “U.S. Federal Income Tax Considerations of the Combination.” |

The Liberty Broadband Board also considered a variety of risks, uncertainties and other potentially negative factors in its deliberations concerning the combination, including the following (which are not necessarily presented in order of relative importance):

| • | the risk of being unable to achieve the benefits expected from the combination; |

| • | the potential disruption of the businesses of Liberty Broadband and Charter, as its management and employees devote time and resources to completing the combination; |

| • | the substantial costs of effecting the combination; |

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| • | while the combination is expected to be completed, there is no assurance that all conditions to the parties’ obligations to complete the combination will be satisfied or waived, and as a result, it is possible that the combination might not be completed; |

| • | the interests of Liberty Broadband’s directors and executive officers and the interests of Charter’s directors and executive officers in the combination described under “—Interests of Liberty Broadband Directors and Executive Officers in the Combination” and “—Interests of Charter Directors and Executive Officers in the Combination”, respectively; |

| • | that the merger consideration to be received by holders of shares of Liberty Broadband common stock will consist of Charter Class A common stock based on a fixed exchange ratio and that the value of the merger consideration may decline either before or after the Liberty Broadband special meeting and there will be no adjustment to such exchange ratio, thereby exposing the Liberty Broadband stockholders to the risks of an equity investment; |

| • | that certain provisions of the merger agreement that require Liberty Broadband to pay Charter a termination fee in certain circumstances could deter a third party from making a competing acquisition proposal for Liberty Broadband common stock or assets of Liberty Broadband; |

| • | the tax liabilities that