Tax Issues Drove Charter/Liberty Broadband Deal Proposal: MoffettNathanson

A proposed Charter Communications/Liberty Broadband combination would fix tax issues stemming from the requirement that Liberty -- the single largest shareholder of Charter -- sell into Charter's share repurchase program, MoffettNathanson's Craig Moffett noted Wednesday. The note recapped a conversation with Liberty Chairman John Malone. On Monday, Liberty Broadband said Charter had made an offer and that it had counter-offered. Liberty said the proposed deal has a closing date of June 30, 2027. According to Malone, Charter proposed a transaction that would exclude GCI, which Liberty owns, but Liberty's counteroffer includes GCI. A GCI transaction would require FCC approval, according to Malone.