Liberty Broadband (LBRDA) Stock

Charter Communications has sealed a deal to acquire John Malone's Liberty Broadband in the latest media chess move by Malone. While far from the glitzy spotlight of Warner Bros. Discovery, Formula One or other parts of Malone's investment portfolio, the broadband deal has been closely tracked as the parties negotiated in recent months.

Investors appear to be betting that Liberty Broadband and Charter Communications can meet in the middle and reach a deal for the latter to buy the former.

The company submitted a counteroffer to Charter, it said Tuesday morning.

Liberty Broadband preferred stock offers stable income, backed by a significant stake in Charter Communications, ensuring high safety for dividend payments. The preferred stock is trading under par, presenting a good buying opportunity. If interest rates are cut, the price can easily return to above par. The mandatory redemption at par on March 8, 2039 is an attractive characteristic that is not often encountered in preferred stock.

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Liberty Broadband Corporation Announces Proposed Private Offering of Exchangeable Senior Debentures.

Following its Q4/23 earnings release, Charter Communications and its major shareholder Liberty Broadband crashed 16%. Since I don't believe fundamentals justify such a steep sell-off, the investment case for Liberty Broadband has become even more compelling. Liberty Broadband is virtually certain to outperform Charter over the long-term thanks to a 28% NAV discount and accretive buybacks.