After waging a largely successful battle at
last year, billionaire investor Carl Icahn cut his stake in the media giant by 64%.
Through his investment firm Icahn Management, the famous investor who made a name for himself as a corporate raider in the 1980s disclosed in a regulatory filing late Wednesday that he reduced his Time Warner stake to 20 million shares in the fourth quarter from his previous holding of 55 million shares.
It was Icahn's activism at the media conglomerate that got its shares moving higher following a long stretch of doldrums after the company's ill-fated merger with AOL and the bursting of the Internet bubble.
After losing over two-thirds of their value in the early years of this decade, shares of Time Warner gained new momentum last summer after Icahn used his stake in the company to wage a proxy fight, demanding that the company take on debt to repurchase stock and return value to shareholders.
Icahn and Time Warner CEO Dick Parsons reached a truce early last year that called for a big share buyback and other shareholder-friendly measures. Since the beginning of September, shares of Time Warner have gained more than 18%.
The company's decisions to spin off its cable division and refocus AOL's business on an ad-supported model have lent momentum to its gains.
Meanwhile, Icahn's filing also revealed that he more than tripled his stake in
Federated Department Stores
to 6.8 million shares during the quarter from 2 million shares.
Time Warner shares recently were down 19 cents to $21.29. Shares of Federated were down a penny to $44.32.