GCI sold in billion-dollar acquisition

Alaska telecom provider GCI has announced it has reached an agreement with Liberty Interactive Corporation. General Communication, Inc. will be bought out by Liberty Interactive Corporation, an American media conglomerate and venture capital group. GCI's business, assets and liabilities will be combined with that of subsidiary Liberty Ventures Group, forming a company renamed GCI Liberty. "This transaction is a win for our shareholders, customers, and employees," stated Ron Duncan, GCI co-founder, president, and chief executive officer. "As part of a larger company, GCI will be even better positioned to compete, innovate, and serve Alaskans and our customers in the lower 48 states." In a press release, it was explained GCI will remain a freestanding operation within GCI Liberty. "GCI's leadership team, brand, operations, products and services will not change as a result of the transaction," it read, and the company's headquarters will remain in Anchorage. Already the largest communications provider in the state, GCI will also become the largest operating asset in GCI Liberty's portfolio. GCI Liberty's other assets will include a minority equity interest in Charter Communications, which it claims to be the second-largest cable company in the United States. Jeannette Lee Falsey and Erica Martinson of Alaska Daily News reported the deal will be worth $1.12 billion. In its media release, GCI explained its shareholders will receive $32.50 in GCI Liberty stock for each share in GCI, or about $27.50 in common stock and $5.00 in a new preferred stock. The common and preferred stock of GCI Liberty will be publicly traded. The transaction will be subject to regulatory review and is expected to close in the first quarter of 2018. A request for further comment on the future of GCI's local stores and service was not replied to by Tuesday's press time.