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November 6, 2012 by · Leave a Comment 

Carl Icahn

In an apparent effort to prevent corporate raider Carl Icahn from taking over their company, Netflix’s board of directors on Monday adopted a poison-pill plan that would dilute the company’s shares to the point where Icahn would be unable to buy another sizable chunk without board approval. Icahn, who disclosed last week that he had acquired about 10 percent of Netflix, reacted angrily to the board’s move, saying in a blistering statement that “any poison pill without a shareholder vote is an example of poor corporate governance.” Last week, Netflix’s shares soared 13 percent following Icahn’s acquisition, fueled by shareholders’ belief that the company might now be sold for a premium. Several analysts, however, have pooh-poohed the notion of a possible takeover, observing that it would be easier and cheaper for any media conglomerate simply to copy what Netflix is already doing — as many of them already are. Meanwhile, Amazon stepped up its own battle with Netflix on Monday by making its Amazon Prime service available for a $7.99 monthly fee. (It continues to be available at the yearly price of $69.00.) While the price is in line with Netflix’s and Hulu’s, Amazon Prime subscribers also receive free two-day shipping on purchases and free Kindle book rentals. Savings on shipping charges for Christmas items alone could be enough to offset the price of a monthly subscription.