Icahn Sells ‘About Half’ of Netflix Stake
Activist investor Carl Icahn has apparently sold about half of his stake in streaming video service Netflix Inc. (NASDAQ:NFLX), according to an interview on with CNBC’s FastMoney: Halftime Report, per Barron’s. Netflix shares plummeted more than 7 percent this morning following news that Apple is in discussions with Comcast regarding a streaming-television service partnership, a potential agreement that could cripple Netflix’s hold on the market.
Apple and Comcast aren’t even close to reaching a deal, but the prospect of such a competitor may have provoked Netflix shareholders to sell; Netflix made a similar deal with Comcast in an effort to ensure that shows and movies are streamed through the service more quickly and at a higher quality.
Icahn said of his stake in Netflix during the interview that, “We still have a position. But I did sell a fair percentage of our holdings. I think Netflix is a great company. They got a great model. When we bought it, it was $58. It’s not $58 anymore. I don’t have it in front of me. I think I sold half. And I think it’s a great company, and we’ve got a great CEO there in Reed Hastings, but hey, all these companies, you don’t go to the sky.” Netflix traded this morning down 7 percent, or at $380.65 a share.