Five Rumored Takeover Targets: Chesapeake Energy Corporation (CHK) and More

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Carl Icahn thinks Netflix, Inc. (NASDAQ:NFLX) should be sold
Activist investor Carl Icahn bought about 10% of the Internet streaming giant last fall. In a 13D filing, Icahn revealed that he believed “Netflix, Inc. (NASDAQ:NFLX) may hold significant strategic value for a variety of significantly larger companies.”

Netflix was linked to Microsoft Corporation (NASDAQ:MSFT) in the past, after Netflix CEO Reed Hastings stepped down from Microsoft’s board. The Windows maker might want Netflix to embolden its push into the entertainment space.

Invest based on takeover hope?
CNBC’s Jim Cramer is fond of telling investors never to buy stock simply because they believe the company will be taken over. That’s probably prudent advice, given that someone who bought (and held onto) Walter Energy shares in 2011 has likely lost a tremendous amount of capital.

That said, investors with stakes in these companies (or short sellers betting against them) should be aware of the chatter. Shares of these companies could see sudden, random spikes on seemingly no news if the rumors resurface. Of course, there’s always the possibility that one of the rumors actually comes to fruition — and shareholders might enjoy a quick pay day.

The article Five Rumored Takeover Targets originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

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