Liberty Media Pays $2.62 Billion for Stake in Charter

STAMFORD/ENGLEWOOD: Liberty Media Corporation is acquiring approximately 27.3-percent in shares of Charter Communications for a price of $2.617 billion.

The deal is between Liberty, Apollo Management, Oaktree Capital Management and Crestview Partners. It gives Liberty around 26.9 million shares and approximately 1.1 million warrants in Charter Communications. The purchase, which is expected to close in the second half of the year, will be a combination of cash and new loan agreements. After closing, funds managed by Crestview and Oaktree will hold around 7.4 percent and 2.2 percent, respectively, of Charter’s shares.

“We are excited to make this investment in Charter, the fourth largest cable provider in the U.S.,” said Greg Maffei, Liberty’s president and CEO. “Tom Rutledge and his team have done an impressive job of turning around Charter’s operations and improving its financial position. We look forward to working with Charter’s management team and fellow board members in the future.”

“We are pleased with Charter’s market position and growth opportunities and believe that the company’s investments in its high-capacity digital network, which provides digital HD and on demand television, high-speed data and voice, will benefit its customers and shareholders alike,” said John Malone, Liberty’s chairman.

“This transaction reflects a solid endorsement of the strategy that Tom Rutledge and his team are implementing at Charter,” added Eric Zinterhofer, the chairman of Charter. “Apollo, Oaktree and Crestview have created substantial value for Charter and its shareholders, and on behalf of Charter’s board, we look forward to working with Liberty Media in creating further value.”

Tom Rutledge, the CEO and president of Charter, said, “Liberty Media and John Malone have a well proven track record in our industry and in creating shareholder value. While we have made real progress, we are still in the beginning of our effort to transform Charter, and we welcome the addition of Liberty Media as knowledgeable shareholders as we grow our products, service capabilities and market share. All of us at Charter appreciate the contributions of Apollo, Oaktree and Crestview, which put us on a path for sustainable success.”