This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Netflix Stock Surges as Icahn Buys Big Stake

NEW YORK ( TheStreet) -- Netflix (NFLX) shares surged as much as 20% after legendary activist investor Carl Icahn took a large stake in the movie-streaming and DVD-rental company.

Icahn on Wednesday disclosed in a filing with the Securities and Exchange Commission he has a 9.9% stake in Netflix, or 4,291,066 shares.

Netflix shares rose sharply in reaction to Icahn's disclosure, jumping 20% before briefly being halted in Nasdaq trading. Upon resumption of trading late on Wednesday, Netflix shares were up 14% to $79.56. The company's stock has gained over 20% this year, as the news of Icahn's stake is helping to stem a slide from March's highs of $120-plus.

The filing didn't say if Icahn plans to nominate board seats to the struggling video service.

For Icahn, his newly unveiled Netflix stake represents a return to the tech sector after waging a successful campaign for the breakup of Motorola into Motorola Mobility and Motorola Solutions (MSI). In August 2011, Motorola Mobility was sold to Google (GOOG), in one of the largest technology deals since the financial crisis.

In recent days, Netflix has been rumored to be under the gaze of Microsoft (MSFT). Company officials denied the speculation. At this time last year, Netflix CEO Reed Hastings mapped out a plan to split the company's streaming subscription business from its mail-order unit. Investors and analysts balked, prompting the company to retreat from its plan.

Earlier in October, Icahn submitted a tender offer for military truck maker Oshkosh (OSK) in a $3 billion bid worth $32.50 a share. The Wisconsin-based company's board quickly rejected Icahn's offer, signaling he may need to make a buyout pitch directly to shareholders.

Netflix stands out as Icahn's most notable investment of the fall after he successfully imparted a host of board changes at struggling oil and gas giant Chesapeake Energy (CHK), and was seen as instrumental in the company's divestiture of billions in non-core exploration and midstream assets.

In August, after a rare win in a tender offer campaign for refiner CVR Energy (CVI), Icahn withdrew his bid and is now in the process of IPO-ing individual pieces of the company.

For more on Carl Icahn, see his investment portfolio.

-- Written by Antoine Gara in New York.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs