Liberty Broadband (LBRDK) Financial Report Summaries

Risks

• We are a holding company, and we could be unable to obtain cash in amounts sufficient to service our financial obligations or meet our other commitments.
• Other than cash generated from our participation in Charter’s stock repurchase program, we do not have access to the cash that Charter generates from its operating activities.
• We rely on Charter to provide us with the financial information that we use in accounting for our ownership interest in Charter as well as information regarding Charter that we include in our public filings.
• We may become subject to the Investment Company Act of 1940.
• Certain of our inter-company agreements were negotiated while we were a subsidiary of Liberty.
• GCI faces competition that may reduce its market share and harm its financial performance.
• If GCI experiences customer losses, our company’s financial performance will be negatively impacted.
• Charter operates in a very competitive business environment, which affects its ability to attract and retain customers and can adversely affect its business, operations and financial results.
• Charter depends on third-party service providers, suppliers and licensors; thus, if it is unable to procure the necessary services, equipment, software or licenses on reasonable terms and on a timely basis, its ability to offer services could be impaired, and Charter’s growth, operations, business, financial results and financial condition could be materially adversely affected.
• Charter may not have the ability to pass on to its customers all of the increases in programming costs, which could adversely affect its cash flow and operating margins.
• Any failure to respond to technological developments and meet customer demand for new products and services could adversely affect its ability to compete effectively.
• Charter’s business may be adversely affected if Charter cannot continue to license or enforce the intellectual property rights on which its business depends.
• Various events could disrupt or result in unauthorized access to Charter’s networks, information systems or properties and could impair its operating activities and negatively impact Charter’s reputation and financial results.
• Charter’s exposure to the economic conditions of its current and potential customers, vendors and third parties could adversely affect its cash flow, results of operations and financial condition.
• If Charter is unable to retain key employees, its ability to manage its business could be adversely affected.
• Charter has a significant amount of debt and expects to incur significant additional debt, including secured debt, in the future, which could adversely affect its financial condition and its ability to react to changes in its business.
• The agreements and instruments governing Charter’s debt contain restrictions and limitations that could significantly affect its ability to operate its business, as well as significantly affect its liquidity.
• Charter’s business is subject to extensive governmental legislation and regulation, which could adversely affect its business.
• Changes to the existing legal and regulatory framework under which Charter operates or the regulatory programs in which Charter or its competitors participate, including the possible elimination of the federal broadband ACP subsidy for low-income consumers, could adversely affect Charter’s business.
• Tax legislation and administrative initiatives or challenges to Charter’s tax and fee positions could adversely affect its results of operations and financial condition.
• Charter’s cable system franchises are subject to non-renewal or termination and are non-exclusive. The failure to renew a franchise or the grant of additional franchises in one or more service areas could adversely affect its business.
• We expect our stock price to continue to be directly affected by the results of operations of Charter and developments in its business.
• Although our Series B common stock is quoted on the OTC Markets, there is no meaningful trading market for the stock.
• It may be difficult for a third party to acquire us, even if doing so may be beneficial to our stockholders.
• Holders of a single series of our common stock may not have any remedies if an action by our directors has an adverse effect on only that series of our common stock.