Icahn Buys Into Netflix – Seems to Suggest Someone Else Should Buy Him Out
Carl Icahn, who seems to be getting better at takeovers and aggressive investing as he gets older – at 76 years old, Icahn’s net worth is estimated by Forbes to be $14.8 billion – bought a 10% stake in Netflix (NFLX) and, in a filing, suggested someone else might want to buy the whole company.
As the Wall Street Journal reported: In a regulatory filing, Mr. Icahn reported a 9.98% beneficial stake in the company, including shares underlying call options, and said Netflix "may hold significant strategic value for a variety of significantly larger companies that are engaging in more direct competition with one another due to the evolution of the internet, mobile, and traditional industry.”
Netflix shares surged on the news.
YCharts recently wrote about the growing difficulty of NetFlix’s business model, which has forced it to spend heavily to sign up new subscribers and, increasingly, to obtain content from Hollywood.
Icahn, never shy, will surely make his reasoning more clear in the days to come.
From the editors of YCharts, which includes the just-released YCharts Pro Platinum for professional investors.
Filed under: Company Analysis