Liberty Broadband Corporation

Overview

• Liberty Broadband Corporation is a holding company whose primary asset is an equity-method investment in Charter Communications, Inc. (Charter/Spectrum). The company’s cash flow is derived through that Charter investment.
• As of December 31, 2025, Liberty Broadband owned approximately 32.8% of Charter’s economic interest, while Charter voting power for Liberty Broadband is capped at 25.01% (Voting Cap). Liberty Broadband’s equity interest is governed by a Stockholders Agreement and related amendments.
• Liberty Broadband accounts for its Charter stake using the equity method and uses Charter-supplied financial information in its public filings.
• Liberty Broadband’s liquidity sources include cash from participation in Charter’s share repurchase program, loans from Charter, and monetization of other assets. Access to Charter operating cash is governed by the Merger Agreement and related agreements.

Recent corporate actions and structure

• Broadband spin-off / Charter relationship
  • Liberty Broadband was created via a spin-off in 2014 and later acquired an interest in Charter through subsequent transactions.
• GCI divestiture
  • On July 14, 2025, Liberty Broadband completed a divestiture of the GCI business and distributed 0.20 of a share of GCI Liberty Group stock for each Liberty Broadband share. GCI Liberty became an independent public company.
  • Liberty Broadband and GCI Liberty entered into indemnity and tax-sharing arrangements related to the divestiture.
• Separation and Distribution Agreement
  • Executed June 19, 2025; the GCI Liberty spin-off to Liberty Broadband stockholders completed on July 14, 2025.
• Merger Agreement with Charter (the Combination)
  • On November 12, 2024, Charter agreed to acquire Liberty Broadband in a stock-for-stock transaction. Each Liberty Broadband share would convert into 0.236 Charter Class A common shares, with cash paid in lieu of fractional shares.
  • As a closing condition, Liberty Broadband would divest the GCI Business. Charter would bear corporate-level tax liability upon completion of the Combination, with a potential tax-receivable arrangement if excess tax liability arises; projected to be below $420 million.
• Interim merger period stock repurchases
  • Amendments to the Stockholders Agreement provide that, during the pendency of the Merger, Charter will repurchase monthly Charter Class A shares from Liberty Broadband (the greater of $100 million or an amount intended to preserve Liberty Broadband’s liquidity per the amendment). If repurchases would reduce Liberty Broadband’s equity below 25.25% post-repurchase, Charter will loan Liberty Broadband the shortfall under specified terms.

Charter as the operating business (Spectrum) and related assets

• Charter Communications operates under the Spectrum brand, providing broadband connectivity across consumer and business segments.
• Spectrum services cover Internet, mobile, video, and voice across 41 states and serve approximately 58 million homes and businesses.
• Network evolution and mobile partnerships
  • Charter is pursuing a fiber-powered network evolution that includes Distributed Access Architecture (DAA), DOCSIS 4.0, and spectrum upgrades toward 1.8 GHz to enable higher speeds and multi-gig capabilities.
  • Spectrum Mobile operates with 5G capabilities using Verizon and, beginning in 2026, will include a multi-year agreement with T-Mobile for Spectrum Business customers.
• Products and services
  • Internet and WiFi: Spectrum Internet (speeds up to 1 Gbps; multi-gig in parts of the footprint), Advanced WiFi, Speed Boost, and WiFi extenders.
  • Mobile: Spectrum Mobile with 5G service, contract-free plans, and taxes/fees included in pricing.
  • Video: Spectrum TV (linear channels, on-demand, DVR/cloud DVR), Spectrum TV app, Xumo integration and Xumo Stream Boxes for new video customers, and a Spectrum App Store for app activation and management.
  • Commercial services: Spectrum Business (Internet, data networking, fiber connectivity, voice), serving small, mid-market, and large businesses with managed services and Unified Communications.
  • Advertising: Spectrum Reach provides local, regional, and national TV advertising across multiple platforms, including data-driven and programmatic options.
  • Regional sports and news: Spectrum SportsNet (Los Angeles Lakers rights), a stake in SportsNet New York (Mets) via joint arrangements, and Spectrum News networks (NY1, SoCal, and other regional news outlets).
  • Multi-dwelling unit (MDU) and targeted services: Spectrum Ready, Advanced Community WiFi, and property-wide connectivity solutions.
• Scale and operations
  • Charter operates a largely fiber-powered backbone with a last-mile hybrid fiber-coax (HFC) network in most areas.
  • The company emphasizes ownership of network assets, a customer-focused service model, and an in-house field workforce for much of its operations.
• Fiber initiative and government subsidies
  • Since 2022, Charter has invested about $7.7 billion in subsidized rural construction, activating roughly 1.3 million passings, and plans total investment above $8 billion.
  • Through 2025, Charter received over $2 billion in awards from programs including RDOF, BEAD, ARPA, and IIJA to support rural deployment.
• Network capacity and future plans
  • Charter is upgrading spectrum to support higher speeds (planned steps to 1.2 GHz and then 1.8 GHz), deploying DOCSIS 4.0 for multi-gig service, and offering a “Fiber on Demand” approach for fiber-to-the-home expansion.
• Workforce
  • Charter reports a 100% U.S.-based employee base and maintains substantial in-house field operations; in 2025 in-house field teams handled over 80% of customer premise service transactions in some contexts.

Key public metrics and financials (as reported)

• Charter operating cash flow (approximate, annual)
  • 2025: ~$16.1 billion
  • 2024: ~$14.4 billion
  • 2023: ~$14.4 billion
• Indebtedness and leverage
  • Total principal debt: approx. $94.6 billion
  • Leverage ratio (Adjusted EBITDA): 4.15x as of December 31, 2025
  • Charter plans to incur additional debt in connection with the Cox Transactions and the Combination, subject to leverage targets.
• Debt covenants
  • Multiple covenants across Charter’s debt instruments restrict indebtedness, dividends, asset sales, and other actions.
• Customer metrics (December 31, 2025 vs 2024)
  • Total Customer Relationships: 31,846 (2025) vs 32,214 (2024)
  • Total Connectivity Customers: 30,640 (2025) vs 30,845 (2024)
  • Total Internet Customers: 29,680 (2025) vs 30,083 (2024)
  • Total Mobile Lines: 11,766 (2025) vs 9,858 (2024)
  • Total Video Customers: 12,605 (2025) vs 12,892 (2024)
  • Total Voice Customers: 6,046 (2025) vs 6,884 (2024)
  • Mid-Market & Large Business PSUs: 357 (2025) vs 340 (2024)
• Residential and small business revenue measures (monthly)
  • Monthly Residential Revenue per Residential Customer: $119.05 (2025) vs $118.71 (2024)
  • Monthly Small Business Revenue per Small Business Customer: $161.50 (2025) vs $161.97 (2024)
• Employees
  • Charter reports 100% U.S.-based employees. Liberty Broadband reports 74 Liberty corporate employees who provide management services to Liberty Broadband under a services agreement.
• Rural expansion and subsidies
  • Charter has spent $7.7 billion on subsidized rural construction since 2022, activated about 1.3 million passings, expects total investment above $8 billion, and has been aided by over $2 billion in RDOF and other grants. The rural construction is subject to build-out obligations and regulatory milestones.

Other points of note

• Governance and intercompany alignment
  • Liberty Broadband has three designated directors on Charter’s board (subject to independence and committee qualification requirements) and governance rights including committee representation and participation in Charter’s stock repurchase program during the Merger pendency.
• Intercompany agreements and potential conflicts
  • Tax-sharing, services, and facilities-sharing arrangements exist among Liberty Broadband, Liberty, GCI Liberty, and Charter. These arrangements create areas where arm’s-length negotiation and overlapping leadership can present potential conflicts of interest.
• Combination risks and process
  • The proposed Combination requires tax and regulatory reviews, and includes potential termination fees and other outcomes if the parties do not complete the transaction.
• Information sources
  • Liberty Broadband and Charter filings and related information are available on their corporate websites and the SEC’s website.

Summary takeaway

Liberty Broadband is a holding company whose primary asset is a sizable equity-method stake in Charter Communications (Spectrum). Liberty Broadband’s governance rights, liquidity and distribution mechanics are closely tied to Charter through stockholder agreements, repurchase arrangements, and intercompany contracts. Charter operates the Spectrum business across consumer and commercial markets, is pursuing network upgrades and rural expansion, reported approximately $16.1 billion in operating cash flow in 2025, and carried roughly $94.6 billion of principal debt with a leverage ratio near 4.15x as of December 31, 2025. Charter’s customer base shows growth in mobile lines while other lines (video, internet) display mixed year-over-year trends.