Carl Icahn, Netflix: In a 13D filing just reported to the SEC, Carl Icahn disclosed a 4.5% stake in Netflix, Inc. (NASDAQ:NFLX), about half what he had owned previously. Netflix stock is down after hours as a result, and here’s what Icahn had to say via Twitter:
The shares were sold from the Sargon portfolio, managed by Icahn’s son Brett, and David Schechter. The shares have been sold after Carl Icahn’s decision, based on the 457% growth of the price of the held shares, purchased at $58 apiece. To sell the shares Carl Icahn and Icahn Enterprises signed an agreement with Brett Icahn and David Schechter, in terms of which the latter will still get compensations based on the performance of Netflix’ stock, Icahn said in a press release.
Brett Icahn and David Schechter also said that despite the share price growth since the original investment, they still consider the stock as being undervalued. Since the low subscription price of Netflix of $7.99 per month, and the high-quality content makes Netflix an attractive bargain for consumers, the managers of the Sargon Portfolio believe that the company has a potential to add more subscribers, and with the currently low price, it might consider slightly increasing the monthly subscription fee, which will significantly increase the revenue of the company.