Carl Icahn Buys Netflix Stake

NEW YORK: The billionaire investor Carl Icahn has purchased a 10-percent stake in Netflix, which led share prices in the media company to skyrocket.  

Icahn expressed his beliefs that Netflix is undervalued. He indicated in a regulatory filing that he thinks the company should explore a sale or other ways to increase its value. 

Following the news of Icahn’s investment, Netflix’s stock rose as much as 22 percent. It closed regular trading up $9.66, or 14 percent, to $79.24.

“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 filing reads. “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.”