Liberty Media Is Investing $2.6 Billion In Charter Communications

Posted Mar 19, 2013

Liberty Media is going to be investing $2.617 billion to buy a 27.3% stake in cable company, Charter Communications.  Based in Stamford, Connecticut, Charter is ranked the fourth largest cable company in the United States.  Liberty will be funding the deal with cash on hand and with new loan arrangements.

Liberty has a definitive agreement with investment funds that are managed by Apollo Management, Oaktree Capital Management, and Crestview Partners to buy around 26.9 million shares and 1.1 million warrants in Charter.  The investment is based on $95.50 per share.

The investment is expected to close in Q2.  Charter will give Liberty Media as chairs for as many as four directors for the board of directors.  Liberty Media intends to add Gregory Maffei (president/CEO of Liberty Media), Nair Balan (EVP and CTO of Liberty Global), and Michael Huseby (Barnes & Noble CFO) to the board at Charter.