Monday, November 19, 2012

Netflix, Inc. (NASDAQ:NFLX) not looking at potential buyers

Streaming video services provider Netflix, Inc.(NASDAQ:NFLX) has no intention of finding a buyer for itself, according to its Chairman and Founder Reed Hastings.

Should Investors Buy NFLX Now? Find Out Here

Investor Carl Icahn, who has acquired about 10 percent stake in the company, has been making noises about mounting a hostile bid for the company.

In response to Icahn's comments that Netflix should be acquired by a larger firm, Hastings said, ""We think we can make it in the long term absolutely on our own—we've been doing that for 10 years."

He added that Netflix has been the subject of takeover for a long time. Incidentally Hastings and Icahn had met in New York this week to talk about the investor's recent stake acquisition in the company, but both declined to talk about the meeting.

"There's a basic philosophical difference here,” Icahn said on Friday. "I believe the shareholders, the rightful owners of the company, should decide whether a company should be sold, not the management."

Netflix has tried to pre-empt any hostile takeover attempts by introducing a poison pill strategy that is meant to deter a corporate raider from taking up a larger stake and requiring board approval. Hastings is also taking counsel from long-time advisers as to the best strategy to adopt.

Hastings and Icahn also hurled accusations at each other.

"Will he run a proxy? Probably," said Hastings, referring to the potential that Icahn will seek to nominate board members for a shareholder vote. "Almost always he runs a proxy battle."

And Icahn said that he would make a tender offer rather than wage a proxy battle.

"Just because Icahn is the new shareholder with a big call option with a position that says it should be sold, that doesn't change the calculus of a potential buyer," Hastings said.

1 comment:

  1. Hastings has no idea what he is up against, besides, Icahn can only make Hastings a richer man for it.


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