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Billionaire asks to take controlling interest of GCI

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Billionaire asks to take controlling interest of GCI


The GCI store at Northern Lights Boulevard and C Street. (Bill Roth / ADN)

Some Alaskans are pushing back against a request by a billionaire to take a controlling interest in GCI Liberty, the state’s dominant telecommunications provider.

GCI Liberty and John Malone, a Colorado billionaire and one of the largest private landowners in the U.S., are also asking the Regulatory Commission of Alaska for a waiver to keep secret financial statements associated with the proposal. They argue in part that public disclosure could cause financial harm.

The Alaska Beacon first reported on the requests on Monday.

More than 40 individuals have commented against the proposal and the requests for secrecy in a comment period that ends at 5 p.m. Tuesday before the Regulatory Commission of Alaska. The majority of the comments were uniquely written, not form letters.

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Many said they oppose giving one person, particularly a non-Alaskan, control of a company that plays a vital role statewide, providing services in more than 200 Alaska communities.

Malone filed his request with the agency early this month.

The chair of GCI Liberty, Malone holds 53.5% of the aggregate voting power at GCI Liberty, the agency says.

But his voting power is restricted to 49.32%, based on agreements entered into by entities related to him, the agency says.

“GCI Liberty and Dr. Malone seek approval for Dr. Malone to increase his voting power to above 50% of the aggregate voting power of GCI Liberty, a level that would constitute control of GCI Liberty and its certificated subsidiary GCICC (GCI Communication Corp.),” the state regulatory agency said.

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GCI Liberty recently reported revenue for the first six months of this year at $527 million.

Net earnings during the period, after expenses, were $62 million, according to financial reports on its website. The company came close to doubling its net earnings from the same period in the prior year.

In a statement from spokesperson Josh Edge, GCI said it “is deeply committed to Alaska and to serving Alaskans. Our headquarters and senior leadership team are all based in Alaska, and we continue making decisions locally to serve communities across the state. While our parent company, GCI Liberty, is involved in this regulatory filing, we remain focused on connecting Alaskans and investing in the state’s future, just as we’ve done for more than 45 years.”

In written comments to the agency, critics of Malone’s request and the desire for secrecy assert that Malone seeks increased control to boost profits, which would come at the expense of GCI customers in the form of higher bills and reduced services.

“Internet and phone services are necessary public services, often life saving,” wrote Christine Niemi, of Douglas. “These services should not be controlled by those whose goal is for profit. The interest of the public must be the primary concern.”

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“I believe it is imperative that this process remain transparent and accountable to the public,” Jo Ann Gruber wrote.

“… The request to keep financial documents confidential undermines the principles of open governance and public oversight,” Gruber added. “These documents are critical for understanding the implications of the proposed takeover, including potential impacts on service quality, pricing, rural access, and long-term investment in Alaska’s communications infrastructure. Allowing secrecy in this context sets a dangerous precedent and erodes public trust.”

The state agency said it “will rule on the petition for confidential treatment and motion for waiver” following the comment period. At that time, it will also determine if the application from Malone is complete.

GCI, launched in Alaska in 1979, has undergone major changes in recent years. It was sold to Liberty Broadband of Colorado in 2017, upsetting some customers who wanted the ownership to remain local. Among other developments, it has outsourced its call center to the Philippines, affecting dozens of Alaska jobs, and ended its cable TV platform in favor of an internet streaming service.





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Alaska

Sand Point teen found 3 days after going missing in lake

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Sand Point teen found 3 days after going missing in lake


SAND POINT, Alaska (KTUU) – A teenage boy who was last seen Monday when the canoe he was in tipped over has been found by a dive team in a lake near Sand Point, according to a person familiar with the situation.

Alaska’s News Source confirmed with the person, who is close to the search efforts, that the dive team found 15-year-old Kaipo Kaminanga deceased Thursday in Red Cove Lake, located a short drive from the town of Sand Point on the Aleutian Island chain.

Kaminanga was last seen canoeing with three other friends on Monday when the boat tipped over.

A search and rescue operation ensued shortly after.

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Alaska Dive Search Rescue and Recovery Team posted on Facebook Thursday night that they were able to “locate and recover” Kaminanga at around 5 p.m. Thursday.

“We are glad we could bring closure to his family, friends and community,” the post said.

This is a breaking news story and will be updated when more details become available.

See a spelling or grammar error? Report it to web@ktuu.com

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Opinion: Homework for Alaska: Sales tax or income tax?

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Opinion: Homework for Alaska: Sales tax or income tax?


iStock / Getty Images

This is a tax tutorial for gubernatorial candidates, for legislators who will report to work next year and for the Alaska public.

Think of it as homework, with more than eight months to complete the assignment that is not due until the November election. The homework is intended to inform, not settle the debate over a state sales tax or state income tax — or neither, which is the preferred option for many Alaskans.

But for those Alaskans willing to consider a tax as a personal responsibility to help fund schools, roads, public safety, child care, state troopers, prisons, foster care and everything else necessary for healthy and productive lives, someday they will need to decide on a state income tax or a state sales tax after they accept the checkbook reality that oil and Permanent Fund earnings are not enough.

This homework assignment is intended to get people thinking with facts, not emotions. Electing the right candidates will be the first test.

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Alaskans have until the next election because nothing will change this year. It will take a new political alignment led by a reality-based governor to organize support in the Legislature and among the public.

But next year, maybe, with the right elected leadership, Alaskans can debate a state sales tax or personal income tax. Plus, of course, corporate taxes and oil production taxes, but those are for another school day.

One of the biggest arguments in favor of a state sales tax is that visitors would pay it. Yes, they would, but not as much as many Alaskans think.

Air travel is exempt from sales taxes. So are cruise ship tickets. That’s federal law, which means much of what tourists spend on their Alaska vacation is beyond the reach of a state sales tax.

Cutting further into potential revenues, state and federal law exempts flightseeing tours from sales tax, which is a particularly costly exemption when you think about how much visitors spend on airplane and helicopter tours.

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That leaves sales tax supporters collecting from tourists on T-shirts, gifts for grandchildren, artwork, postcards, hotels, Airbnb, car rentals and restaurant meals. Still a substantial take for taxes, but far short of total tourism spending.

An argument against a state sales tax is that more than 100 cities and boroughs already depend on local sales taxes to pay for schools and other public services. Try to imagine what a state tax piled on top of a local tax would do to kill shopping in Homer, already at 7.85%, or Kodiak, Wrangell and Cordova, all at 7%, and all the other municipalities.

Supporters of an income tax say it would share the responsibility burden with nonresidents who earn income in Alaska and then return home to spend their money.

Almost one in four workers in Alaska in 2024 were nonresidents, as reported by the state Department of Labor in January. That doesn’t include federal employees, active-duty military or self-employed people.

Nonresidents earned roughly $3.8 billion, or about 17% of every dollar covered in the report.

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However, many of those nonresident workers are lower-wage and seasonal, employed in the seafood processing and tourism industries, unlikely to pay much in income taxes. But a tax could be structured so that they pay something, which is fair.

Meanwhile, higher-wage workers in oil and gas, mining, construction and airlines (freight and passenger service) would pay taxes on their income earned in Alaska, which also is fair.

It comes down to what would direct more of the tax burden to nonresidents: a tax on income or on visitor spending. Wages or wasabi-crusted salmon dinners.

Larry Persily is a longtime Alaska journalist, with breaks for federal, state and municipal public policy work in Alaska and Washington, D.C. He lives in Anchorage and is publisher of the Wrangell Sentinel weekly newspaper.

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Nome brothers summit Mt. Kilimanjaro, carry Alaska flag to third major peak

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Nome brothers summit Mt. Kilimanjaro, carry Alaska flag to third major peak


ANCHORAGE, Alaska (KTUU) – Two brothers from Nome recently stood at the summit of Mount Kilimanjaro in Africa, planting an Alaska flag at 19,000 feet above the African plains.

The Hoogendorns completed the seven-day climb — five and a half days up and a day and a half down — trekking through rainforest, desert, and alpine terrain before reaching snow near the summit. The climb marks their third of the world’s seven summits.

Night hike to the top

The brothers began their final summit push at midnight, hiking through the night to reach the top by dawn.

“It was almost like a dream,” Oliver said. “Because we hiked through the night. We started the summit hike at midnight when you’re supposed to be sleeping. So, it was kind of like, not mind boggling, but disorienting. Because you’re hiking all night, but then you get to the top and you can finally see. It’s totally different from what you’d expect.”

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At the summit, temperatures hovered around 10 degrees — a familiar range for the Nome brothers. Their guides repeatedly urged them to put on jackets, but the brothers declined.

“We got to the crater, and it was dark out and then it started getting brighter out,” Wilson said. “And then you could slowly see the crater like illuminating and it’s huge. It’s like 3 miles across or something. Like you could fly a plane down on the crater and be circles if you want to. Really dramatic view.”

A team of 17 for two climbers

Unlike their previous expeditions, the brothers were supported by a crew of 17 — including porters, a cook, guides, a summit assistant, and a tent setup crew.

The experience deviated from their earlier climbs, where they carried their own food, melted snow for water, and navigated routes independently.

“I felt spoiled,” Wilson said. “I was like, man, the next mountain’s gonna be kind of hard after being spoiled.”

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Alaska flag on every summit

Oliver carried the same full-size Alaska flag on all three of his major summits, including in South America and Denali in North America, despite the added weight in his pack.

“I take it everywhere these days,” Oliver said. “It’s always cool to bring it out. And then people ask, you know, ‘where’s that flag from?’ Say Alaska.”

When asked about his motivation for the expeditions, Wilson said “I guess to like inspire other people. Because it seems like a lot of people think they can’t do something, but if you just try it, you probably won’t do good the first time, but second time you’ll do better. Because you just got to try it out. Believe in yourself.”

Background and next goals

The Hoogendorns won the reality competition series “Race to Survive: Alaska” in 2023. In 2019, they were the first to climb Mount McKinley and ski down that season. Oliver also started a biking trip from the tip of South America to Prudhoe Bay with hopes of still completing it.

Kilimanjaro is their third summit. The brothers said they hope to eventually complete all seven summits, with Mount Vinson in Antarctica among the peaks they are considering next… all while taking Alaska with them every step of the way.

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