Netflix has lost nearly 75% of its share-price in the last 17 months while Amazon.com has increased its shares by 117% and Wal-Mart, by 140%. Business investment tycoon, Carl Icahn, has announced a 10% equity acquisition of the company, leading Netflix to its first significant rise in share-price since mid-2011. Icahn is urging Netflix CEO, Reed Hastings, to allow for a "face-off" at the corporate headquarters in Los Gatos, California after the acquisition is complete.
Icahn is known for his historical pattern of hostile corporate-takeovers and raids as he has positioned himself into controlling seats among a list of large companies including Marvel Comics, Blockbuster, Time Warner, Motorola, and TWA - just to name a few. The investor sees the company as "undervalued," but the company's financial analyst, Michael Pachter, sees this latest maneuver by Icahn as "misled" and believes Icahn is in pursuit of convincing Hastings that selling the company is the best option.
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