Charter Communications Inc. announced Wednesday an all-stock agreement to buy Liberty Broadband Corp. at better terms than were previously proposed but less than what Liberty had countered with.

Charter Communications has announced a deal to acquire Liberty Broadband as part of an all-stock transaction. Liberty Broadband, which is controlled by American businessman John Malone, owns a 26 percent stake in broadband and cable firm Charter and Alaskan telecommunications subsidiary GCI.

Charter Communications (NASDAQ:CHTR) shares were up 5.6% premarket on Wednesday after the company said it would buy Liberty Broadband Corporation (NASDAQ:LBRDA) in an all-stock transaction. LBRDA shares were down 2.