Billionaire asks to take controlling interest of GCI

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.

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.

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.”

“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.