Carl Icahn Buys 10% Stake in Netflix

He thinks it's undervalued; move sends shares soaring
By John Johnson,  Newser Staff
Posted Oct 31, 2012 4:42 PM CDT
Carl Icahn Buys 10% Stake in Netflix
Billionaire financier Carl Icahn in a 2007 file photo.   (AP Photo/Charles Rex Arbogast, File)

Netflix is having a busy week, and not only because storm-bound viewers streamed lots of movies. News broke today that billionaire financier Carl Icahn has bought a 10% stake in the company because he thinks it's undervalued, reports MarketWatch. Shares immediately surged 20%, prompting a temporary halt in trading, then closed the day up 14% at about $79.

At CNBC, Julia Boorstin writes that the most interesting part of the filing is Icahn's contention that Netflix "may hold significant strategic value for a variety of significantly larger companies." Which means that he may eventually push Netflix to sell to Amazon, Apple, Microsoft, or Google. Or he may just push for a faster expansion overseas. "We’ll be watching to see what Icahn says," she writes. "He’s not shy and doesn’t mince words. (More Netflix stories.)

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