GCI Acquired by Liberty Interactive Corporation
ANCHORAGE, AK (April 4, 2017) – Today, General Communication, Inc. (“GCI”) and Liberty Interactive Corporation (“Liberty Interactive”) announced the signing of an agreement that will combine GCI’s business with certain assets and liabilities of the Liberty Ventures Group (“Liberty Ventures”) into a company to be called GCI Liberty.
“This transaction is a win for our shareholders, customers, and employees,” said Ron Duncan, GCI co-founder, president, and chief executive officer. “As part of a larger company, GCI will be even better positioned to compete, innovate, and serve Alaskans and our customers in the lower 48 states.”
“I am deeply proud of the contribution that GCI employees have made, and will make, to Alaska’s development as the 49th state. All of us at GCI are grateful for our customers’ support over the years, and we will continue to work hard to retain that support in the years ahead.”
GCI will remain a freestanding operation within GCI Liberty. GCI’s leadership team, brand, operations, and products and services will not change as a result of the transaction. GCI will remain headquartered in Anchorage.
GCI will be the largest operating asset in GCI Liberty’s portfolio of assets. GCI Liberty’s other assets will include a minority equity interest in Charter Communications, the second largest cable company in the United States.
GCI shareholders will receive $32.50 in GCI Liberty stock – $27.50 in common stock and $5.00 in a new preferred stock – for each share of GCI stock. The common and preferred stock of GCI Liberty will be publicly traded.
“This transaction, including the name GCI Liberty, recognizes the value created by the entire GCI team as we deployed advanced communications technology and services throughout Alaska over the past 38 years,” Duncan said. “The leaders of Liberty Interactive know us, respect how we operate, and believe that we will continue to grow value for customers and shareholders. Our culture, leadership, and focus on Alaska will continue as strong as ever.”
“We are pleased to announce this transaction with GCI,” said Greg Maffei, Liberty Interactive President and CEO. “GCI is the largest communications provider in Alaska, generates solid cash flow, and is a strong fit with the largest assets in Liberty Ventures.”
This transaction is subject to regulatory review and is expected to close in the first quarter of 2018.