This Day On The Street
Continue to site
ADVERTISEMENT
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

The Start-Up That Should Fall After Zipcar?

When you approach the notion of start-ups and M&A using my lens, Netflix (NFLX - Get Report) becomes the next one to fall. Carl Icahn knows this, which is one reason why he decided to give Reed Hastings a little hell. Hastings responded, not surprisingly, by making it more difficult for Icahn to make a move; however, the Netflix CEO did this at what could be his shareholders' expense.

That's the kicker here. Companies such as Netflix and Zynga (ZNGA) make perfect candidates to go the way of Zipcar, but their CEOs have enough control -- officially or not -- to block an unfriendly party from getting too hostile. While it does not and probably never will require a bailout, Facebook (FB - Get Report), controlled by Mark Zuckerberg, operates under the same structure.

If Hastings cares about his company and the future of Netflix as the streaming pioneer, he'll back off like the Zipcar founders did a long time ago. They let corporate executives take over and then make the right move, which, in this case, was giving up independence.

This doesn't mean, however, that Zipcar must cease being a start-up.

-- Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
AMZN $375.56 0.00%
F $15.76 0.00%
FB $80.78 0.00%
NFLX $571.55 0.00%
AAPL $124.75 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs