Liberty Broadband (LBRDA) quietly completed another chapter in the John Malone spinoff saga this month, distributing shares of GCI Liberty(GLIBA)—a standalone Alaskan telecom provider—on July 14, 2025, to shareholders of record as of June 20. The transaction, which had been in the works for several quarters, marks the latest in a long line of complex yet value-oriented splits from the Liberty Media constellation.
The move might not have generated headlines like the recent Becton Dickinson–Waters Reverse Morris Trust or Kraft Heinz’s $20B grocery spin rumors, but for patient investors, GCI Liberty may represent a classic Malone-style hidden gem: underfollowed, cash-flowing, and operationally focused. It is also a smaller telecom, with a market cap of just over $1 billion.
📦 Transaction Summary
- Spinoff Date: July 14, 2025
- Record Date: June 20, 2025
- Distribution Ratio: 0.20 shares of GCI Liberty per one share of Liberty Broadband
- Form: Tax-free spinoff under IRS Section 355
- Result: GCI Liberty now trades independently, with its own board, debt structure, and capital strategy
The rationale, per Liberty’s filing, was to give investors direct exposure to the performance of GCI—Alaska’s leading broadband, wireless, and enterprise telecom provider—while allowing Liberty Broadband to better focus on its Charter Communications (CHTR) stake and future capital allocation.
🧠 Malone’s Playbook: A History of Spins
John Malone has built a media and telecom empire using a precise toolkit: tracking stocks, leverage, and—most notably—spinoffs. The GCI Liberty move follows in the footsteps of many others, where assets with different strategic profiles are unbundled to create focused public companies.
Some highlights from our archives:
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In 2013, Liberty spun off Starz(STRZ), shedding the premium TV network so Liberty Media could pivot toward broadband and stakes in SiriusXM and Charter. We covered that here.
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Earlier, Liberty Interactive’s separation of tracking stocks led to a semi-spinoff involving Expedia, TripAdvisor, and others—a convoluted but revealing example of the Malone method. Our 2012 coverage is here.
Malone’s consistent logic: isolate assets with clear business models, capitalize them efficiently, and let the market re-rate them independently.
📡 What Is GCI Liberty?
GCI—short for General Communication Inc.—was founded in 1979 and is Alaska’s largest telecom provider, offering:
- Broadband internet and fiber to 75% of the Alaskan population
- Wireless service under its own branded network
- Enterprise and government contracts in some of the harshest, most remote conditions in the U.S.
GCI was acquired by Liberty in 2020 and operated inside Liberty Broadband as a wholly owned subsidiary. But its unique geography, regulatory considerations, and slower capital returns made it a somewhat awkward fit next to Liberty’s larger bet: its ~25% equity stake in Charter Communications.
📉 Why the Spinoff?
According to Liberty’s board, spinning off GCI creates clarity and optionality:
- For Liberty Broadband: Focuses entirely on Charter and future capital deployment (e.g., buybacks, merger options)
- For GCI Liberty: Enables operational autonomy and potential strategic M&A in regional broadband or satellite partnerships
- For investors: Allows differentiated valuation of a regional utility-like telecom vs. a national cable/streaming asset
💰 Why GCI Liberty Might Be a Value Play
While GCIL likely won’t get a meme-stock multiple anytime soon, there are real reasons value-oriented investors might take a closer look:
- Stable cash flows from regulated broadband and wireless services
- Underserved market: GCI operates with high barriers to entry across Alaska’s vast, rugged terrain
- Strong recurring revenues from enterprise and government contracts
- Low coverage: As a newly spun company, GCIL may fly under Wall Street’s radar—classic “orphaned stock” status
- Malone’s fingerprints: Historically, Liberty spins deliver for patient holders once the dust settles
Depending on final capital structure disclosures (expected later this quarter), GCIL could offer a compelling low-multiple cash generator with modest growth and optionality in wireless or rural broadband funding programs.
🧾 Bottom Line
GCI Liberty is now live—and while it’s not flashy, it’s vintage Liberty: structurally sound, operationally distinct, and released into the market with little fanfare. Investors who’ve followed Malone over the years know what to look for: undervalued cash flow, hidden assets, and the long game.
We’ll be watching GCI closely as management begins earnings calls, updates capex plans, and potentially signals its own spin-worthy ambitions.
Disclosure: The author has no position in any stock mentioned