Charter Communications has announced a deal to acquire Liberty Broadband as part of an all-stock transaction.

Liberty Broadband, which is controlled by American businessman John Malone, owns a 26 percent stake in broadband and cable firm Charter and Alaskan telecommunications subsidiary GCI.

As part of the deal announced today, Liberty has agreed to divest GCI, which is Alaska's largest communications provider.

"We are pleased to announce this agreement today with Liberty Broadband. I am grateful for Liberty Broadband’s strategic partnership since 2013, and particularly for the support of John Malone, Greg Maffei, and our Liberty Broadband nominated board members,” said Chris Winfrey, president and CEO of Charter.

“We look forward to their continued partnership and support in the coming years in driving value for our shareholders.”

However, Charter said it expects to retire the approximately 45.6 million Charter shares currently owned by Liberty Broadband, noting that it will issue approximately 34 million shares to holders of Liberty Broadband common stock at the closing, resulting in a net decrease of approximately 11.5 million Charter shares outstanding.

“Today’s announced transaction will rationalize Liberty Broadband’s trading discount and ultimately provide our shareholders with enhanced liquidity,” Malone, who is chairman of Liberty Broadband, said.

“The transaction closing timeline reflects my belief in Charter’s operating strategy under the excellent leadership of Chris Winfrey and team and the value creation opportunity for both Charter and Liberty shareholders. I look forward to that continued upside, and to holding Charter shares after the merger closing.”

Variety this week reported that Malone has suggested Charter could merge with rival cable company Comcast in the future, amid talk that President-Elect Donald Trump could be more favorable to M&A deals.

Maffei will step down at the expiration of his contract at the end of this year. From January 1, 2025, he will serve as a senior adviser.

The company, which serves more than 58 million customers and operates in 41 states, said it expects the deal to close on June 30, 2027, unless otherwise agreed, subject to the completion of the GCI spin-off and other customary closing conditions.