Liberty Broadband has made a new merger proposal to Charter Communications to further deepen the existing partnership between the two companies. The focus is on a pure stock transaction that aims to bring tax benefits for both parties.

According to a press release from Tuesday, Liberty Broadband proposes that its common shareholders receive 0.29 Class A Charter common shares in exchange for their shares. The planned merger is to be completed by June 30, 2027, at the latest and is to be carried out tax-free.

This transaction would simplify the dual corporate structure between Charter and Liberty Broadband, improve trading liquidity, and eliminate the existing rights of Liberty Broadband,” said Greg Maffei, President and CEO of Liberty Broadband. The merger is intended to further strengthen the already strong partnership between the two companies.

The final implementation of the merger, however, depends on the approval of the supervisory boards of both companies, the shareholders, and regulatory approvals. Discussions on this matter are still ongoing.

Despite the still pending completion, the markets reacted positively to the news. Liberty Broadband's Class C shares rose by 27.06 percent to $77.56 in NASDAQ trading, while the Class A shares increased by 29.46 percent to $77.51. In contrast, Charter investors were more reserved, and the company's stock temporarily fell by 1.59 percent to $326.36.