Carl Icahn Takes Activist Fight To Netflix

Carl Icahn is going after Netflix, Inc. (NASDAQ: NFLX). A 13D filing with the Securities and Exchange Commission shows that Carl Icahn, via investment entities under him, has taken a stake of 9.98% in total in the troubled media download giant. Reed Hastings is about to be getting some pressure.

The 13D Filing noted, “The Reporting Persons acquired the Shares with the belief that the Shares were undervalued due to the Issuer’s dominant market position and international growth prospects.  The Reporting Persons believe 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.  The Reporting Persons are considering ways for the Issuer to maximize shareholder value but have reached no conclusion. The Reporting Persons may in the future seek to have discussions with the Issuer. The Reporting Persons may, from time to time and at any time: (i) acquire additional Shares and/or other equity, debt, notes, instruments or other securities (collectively, “Securities”) of the Issuer in the open market or otherwise; (ii) dispose of any or all of their Securities in the open market or otherwise; or (iii) engage in any hedging or similar transactions with respect to the Securities.”

In other words, Carl Icahn is saying “Reed, get your act together young man. I’m knocking on your door!”

Netflix shares popped hugely on the news to the 10% circuit breaker. The last print seen was up $6.99 to $76.57 on the day.

JON C. OGG