Liberty Broadband (LBRDA, Financial)’s principal asset consists of its interest in Charter Communications. In late January, rumors broke that Verizon Communications had made an informal acquisition offer to Charter Communications, sending both Charter and Liberty Broadband shares higher. We acknowledge that such a combination makes strategic sense for Verizon as it searches for an efficient means to deploy 5G wireless technology (which will require very dense, wired networks). However, we suspect shareholders can reap greater value from Charter continuing to integrate its Time Warner Cable and Bright House Networks acquisitions on a stand- alone basis. That said, we believe management will pursue the right course (stand-alone or M&A) that will maximize long-term shareholder value.
From Weitz Value Fund first quarter 2017 commentary.
