Carl Icahn Has 1 Billion Reasons to Love Netflix

Activist investor Carl Icahn placed a $350 million bet on Netflix (NASDAQ: NFLX  ) last fall, with intentions of changing the company. Selling Netflix to the highest bidder was one option in Icahn's mind, and perhaps his strongest idea.

But now, his investment has nearly quadrupled in value, adding a cool $1 billion to the original stake. And that's not enough: Icahn, who still hasn't sold a single Netflix share, no longer wants to change or sell the company, and is generally very happy, according to The Wall Street Journal . "When I saw House of Cards, and met with [CEO Reed Hastings], I was sold on what he was doing," Icahn told the Journal.

In this video, Fool contributor Anders Bylund puts Icahn's happiness into perspective. Icahn has bet on the wrong horse in the video sweepstakes before, but he's on the right track this time.

The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.

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  • Report this Comment On May 17, 2013, at 8:29 AM, tomejohnston wrote:

    In my opinion the stock is over valued at these levels. There are a large number of uncertainties. Will their new business model produce a profit? What effect will new competition have on their sales? Will the market embrace the streaming content to their personal devices. Will international expansion be successful?

    Its hard to go against Carl Ichan so I will be waiting the right time to short this stock.

  • Report this Comment On May 20, 2013, at 1:26 AM, lowmaple wrote:

    of course Carl Icahn is not going to say it,s over valued until after he sells

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