Weitz Partners III Opportunity Fund on Liberty Broadband Corporation
Thesis
Liberty Broadband's principal asset is its interest in Charter Communications, whose core broadband business has been pressured by competitive concerns. Weitz remains constructive because Charter's wireless business is growing and investment spending is expected to decline, which should improve the cash-flow setup. The impending combination with Cox is another potential source of operational and strategic upside.
“we remain constructive and believe Charter’s growing wireless business, forecasted reduction in investment spending, and impending combination with Cox provide reasons for optimism.”
Key risks
- Competition in Charter's core broadband market