Updated to reflect Carl and Brett Icahn statements and additional information throughout
NEW YORK (TheStreet) - Carl Icahn is paring his stake in Netflix (NFLX) by over 50%, citing a 457% investment gain since his investment conglomerate, Icahn Enterprises (IEP), became the company's largest shareholder about a year ago.
Icahn disclosed that his holding company has cut its stake in Netflix to 4.5% from an over 9% position that the activist investor made in November 2012, according to filings with the Securities and Exchange Commission. The move comes just a day after Netflix reported better-than-expected third quarter earnings.
In total, Icahn sold nearly three million Netflix shares and will now own 4.5% of the company's outstanding stock, according to a Tuesday filing with the SEC. The filing said the partial stake sale comes after Icahn's 457% gain on the investment, first disclosed on Nov 1., 2012.
"The decision to sell Netflix common shares was made by Carl Icahn in view of the 457% increase in the price of those shares since the original investment at approximately $58 per share," Icahn said in a Tuesday filing.
In multiple media appearances, Icahn has said his son Brett Icahn, a portfolio manager at the firm, was responsible for the Netflix investment and for maintaining the firm's 9.4% stake through a significant 2013 rally in the company's stock.
Icahn, now an active Twitter user, took to the micro-blogging site to thank the company for its strong performance.
Sold block of NFLX today. Wish to thank Reed Hastings, Ted Sarandos, NFLX team, and last but not least Kevin Spacey: http://t.co/BRWpKOBfD2