Liberty Broadband To Invest $5 Bln In Time Warner Cable, Bright House Deals

(RTTNews) - Liberty Broadband Corp. (LBRDA, LBRDK) said it has entered into an agreement with Charter Communications, Inc. (CHTR) to invest $4.3 billion at a price of $176.95 per share in connection with the closing of today's announced proposed merger with Time Warner Cable Inc. (TWC) by Charter.

Charter said a little while ago that the company and Time Warner Cable have entered into a definitive agreement for Charter to merge with Time Warner Cable. The deal values Time Warner Cable at $78.7 billion.

Liberty Broadband has also reaffirmed its commitment to purchase an additional $700 million at a price of $173 per share in connection with Charter's proposed acquisition of Bright House Networks from Advance/Newhouse Partnership.

In connection with these transactions, it is expected that Charter will undergo a corporate reorganization, leading to a current subsidiary of Charter becoming the publicly traded parent company.

In support of the TWC merger, Liberty Broadband will purchase $4.3 billion of stock in New Charter using the proceeds from $4.4 billion of subscriptions for newly issued shares of Liberty Broadband's Series C common stock, at a price of $56.23 per share, equal to Liberty Broadband's net asset value on a sum-of-the parts basis.

Meanwhile, Liberty Interactive Corp. (QVCA, QVCB, LNVTA, LVNTB) said it has entered into an agreement with Liberty Broadband Corp. (LBRDA, LBRDK) whereby Liberty Interactive would invest $2.4 billion in Liberty Broadband in connection with the closing of today's announced proposed merger of Charter Communications, Inc. and Time Warner Cable Inc.

The proceeds of this investment will be used by Liberty Broadband to fund, in part, its agreement to acquire $4.3 billion of Charter stock.

Liberty Interactive's investment in Liberty Broadband will be funded using cash on hand and will be attributed to the Liberty Ventures Group.