Tales of Carl Icahn’s many successful company shakeups can make an infinte list, as he is involved with a large number of companies and is waging war with their boards. Some of his most recent attempts have been at Herbalife Ltd. (NYSE:HLF), Transocean LTD (NYSE:RIG) and Dell Inc. (NASDAQ:DELL), to name a few.
Carl Icahn’s magical hand at Netflix, Inc. (NASDAQ:NFLX) is speaking volumes these days and has generated huge profits for his funds. Netflix, Inc. (NASDAQ:NFLX) shares have gained more than 24 percent YTD and have therefore pumped up the worth of Icahn’s 10 percent position in the company. Icahn bought Netflix in the final quarter of 2012 and went after the company with his no holds barred technique. His investment in 5.5 million shares of Netflix is up by $1 billion now.
Icahn’s estimated buying price for NFLX shares was $58, today his holding is trading at $240, which amounts to a +300 percent profit. At the profit of $185/ share, Icahn’s net gains are in excess of $1.02 billion.
At one point, Netflix, Inc. (NASDAQ:NFLX) adopted the poison pill technique to stonewall Icahn’s shakedown efforts which were directed at the BoD and were pushing the company to sell itself. Icahn was dissatisfied with the company’s board at one time, but then changed his stance and is pretty taken with CEO Reed Hastings these days. In reply to his profits on this position and his opinion of the board, Icahn was quoted as saying, “We are obviously very happy.” In praise of Hastings, Icahn has said that, “When I saw House of Cards and met with Reed, I was sold on what he was doing,” Mr. Icahn said. “The activist position was sort of out of the picture.”
Netflix will keep on increasing its subscriber base, said Schechter. Netflix, Inc. (NASDAQ:NFLX) is set to recieve another boost as the company becomes the original seller of the popular comedy Arrested Development’s Season 4. The anticipation for the TV show is at its peak and is bound to increase the number of Netflix, Inc. (NASDAQ:NFLX) subscribers.
NFLX is up 3.18 percent today.