Liberty’s $1.12B purchase of GCI gets Justice Department signoff

Liberty Global
Changes are in store for Liberty Interactive once the purchase of GCI is finalized.

The U.S. Department of Justice will not oppose Liberty Interactive’s $1.12 billion takeover of Alaska’s General Communications Inc. (GCI).

Multichannel News reports the agency filed an early termination notice for its review of the deal, indicating it has no reason to oppose the merger. The deal is still being reviewed by the FCC. 

Comments for the FCC review are due June 19. 

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RELATED: John Malone buys Alaska’s GCI for $1.12B

Telecom entrepreneur John Malone’s Liberty Interactive announced the purchase of GCI in an all-stock deal valued at $1.12 billion in early April. 

GCI serves cable TV and broadband service to 108,000 customers across Alaska. It’s also the state’s biggest telephone and wireless provider. 

For his part, Malone is known for crafting complicated deals and creating organizations with complex structures.

Liberty Interactive will be renamed QVC Corp. after completion of the deal. GCI will be held by the Liberty Ventures Group side of the business, which also houses Liberty Broadband, Charter Communications and LendingTree Inc., among other companies.

Liberty Ventures will then be split off from the combined company in a new company called GCI Liberty. Liberty Interactive will control 77% of this company, as well as an 84% voting interest. 

Liberty Interactive was split off from Liberty Media in 2013. It primarily controls interests in companies that are involved in video and digital commerce industries.

RELATED: Wave purchased by equity firm TPG for $2.36B, combined with RCN

Amid the ongoing, er, wave of consolidation in the U.S cable industry, private equity firm TPG Capital paid $2.36 billion for Seattle’s Wave Broadband last month, combining it with earlier purchased assets RCN and Grande Communications.

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