Carl Icahn Believes Netflix Should Be Consolidated With A Bigger Tech Company

Posted Nov 4, 2012

Carl Icahn is an aggressive business magnate that started to take control of individual companies in 1978.  In the last several years, he focused heavily in tech companies.  Mr. Icahn pushed for BEA Systems to be sold to Oracle Corporation in January 2008.  In 2008 Carl Icahn became a major shareholder in Yahoo!, ousted Jerry Yang as CEO, and tried to lure Microsoft to buy out the search giant.  In March 2008, he had pushed for Motorola to sell off their mobile business (Google ended up buying up Motorola Mobility).  Carl Icahn was also on the board of directors at Blockbuster until January 2010.  Now Carl Icahn is looking at Netflix.

Earlier this week, Carl Icahn bought a 10% stake in Netflix.  He said that the company is undervalued and has indicated in a regulatory filing that the company should look into being sold or explore other ways to boost their value.

Carl Icahn

“I believe that there is going to be great consolidation between Netflix and, everybody’s read about it, Amazon or Microsoft or Verizon or Google, there are so many possible combinations,” stated Mr. Icahn in an interview with Bloomberg TV.

Some people believe that this is a bad move because larger companies would not really be interested in buying out Netflix. has their own streaming media service.  So does Microsoft, Apple, and Google.

Mr. Icahn purchased 5.5 million shares of Netflix, largely through the purchase of call options.  This gives him the ability to buy Netflix’s shares at a later date at a set price.

Stay tuned and keep reading Pulse2 to learn more about this deal as it unfolds.