headerads

Friday, November 2, 2012

Netflix, Inc. (NASDAQ:NFLX) Welcomes Icahn’s Contribution


It was on Thursday when Netflix, Inc.(NASDAQ:NFLX) said that it was open to input from Carl Icahn, the billionaire activist investor who not monitors 10% of the stocks per day of the video rental company after his disclosure investment.

Netflix mentioned in a statement that was issued in response to Icahn’s revelation of his investment in a regulatory filing on Wednesday that the company has a number of shareholders and that it is always open to the standpoint on how to build on the company’s success.

The filing said he had purchased shares and call options that gave him a 10% stake in the subscription video service.

The activist investor, who has a reputation for shuddering management, told Reuters on Wednesday that he felt Netflix was underrated and would make a great acquisition for a host of companies.
Shares of Netflix jumped 13% on Wednesday after Icahn’s bet was revealed. They plunged 1.6% to $77.94 on Nasdaq on Thursday.

Netflix has been the center of episodic acquisition assumption, with prospective names tossed around from Microsoft to Amazon. It was last Friday when shares shot up 13% after rumors of a prospective Microsoft acquisition, which the company and Netflix denied.

A spokeswoman from Amazon said on Wednesday that the company would not comment on assumption.
Netflix was a Wall Street dearest with an impressive growth rate that enhanced shares as high as $304 in July of 2011. A number of investors soured on the company after it forced a detested price rise in the face of new competition, and bigger spending on content and an international spreading out.

CEO of Netflix, Reed Hastings thinks that it is worth the investment to get into foreign markets sooner than competitors. The company projects a fourth quarter loss because of start-up cost in four Nordic countries. 

No comments:

Post a Comment


Privacy Policy | Legal Disclaimer