FPA Crescent Fund on Charter Communications, Inc.
Thesis
Charter combines fixed broadband with mobile connectivity in an important competitive offering. The company completed acquisitions of Liberty Broadband and Cox Communications, which the managers say improved the balance sheet and expanded geographic coverage. The thesis is that this combination can compete despite changes in the U.S. broadband industry.
“We continue to view Charter's combination of fixed broadband and mobile connectivity as an important competitive offering”
Key risks
- Competition from fiber overbuilders
- Competition from fixed wireless offerings
- Elevated capital expenditures
- Financial leverage