GCI Liberty's proposed acquisition of a six percent stake in Liberty Latin America (LLA) appears to be over after chairman of the board, John Malone, terminated discussions with GCI Liberty.

Malone, who was on both sides of the deal, has opted to acquire GCI Liberty’s six percent equity interest in LLA at the same price paid by GCI Liberty last month, as announced last week by the company.

Malone notably owns a 27 percent voting interest in Liberty Latin America, as well as a 54 percent voting interest in GCIL and an approximate seven percent economic interest in GCIL.

The change of course was announced yesterday by GCI Liberty, which cited it had encountered "unexpected obstacles to completing a larger, more strategic transaction relating to Liberty Latin America Ltd."

“My vision for GCI Liberty contemplates two distinct units - one built around stable, cash‑generative operations, with declining capital intensity and an ability to return capital from its rapidly growing free cash flow, and another focused on long‑term investment growth. While regulatory, tax, and structural complexities have complicated and delayed executing that framework fully, I continue to believe strongly in its merit," said Malone.

"Given that I was unable to complete a larger transaction as originally contemplated, I have offered to purchase the LLA block at GCIL’s cost. This demonstrates both my support for LLA, but also my belief in the concept of GCIL becoming two business units under one umbrella.”

The initial deal would have seen GCI Liberty snap up a six percent stake in LLA from investment funds managed by Searchlight Capital Partners for approximately $107 million.

"When the Searchlight opportunity arose, it fit well with that larger, more strategic transaction, and we purchased those LLA shares in anticipation of our ability to complete the remainder of the plan," said Ron Duncan, president and CEO of GCI Liberty.

"Unfortunately, we were unable to complete the execution of this broader transaction prior to the announcement of the Searchlight LLA acquisition, and, for a number of reasons, we have determined that it is not feasible to complete the remainder of the transaction."

Liberty Latin America operates in more than 20 countries across Latin America and the Caribbean, spanning various consumer brands including BTC, Flow, Liberty, and Más Móvil.

GCI is in the process of acquiring Alaskan fiber infrastructure provider Quintillion for $310 million.

Founded in 1979, GCI is a subsidiary of Liberty Broadband and is Alaska's biggest communications provider. GCI provides data, mobile, voice, and managed services to consumer, business, government, and carrier customers throughout Alaska.