Activist investor Carl Icahn placed a $350 million bet on Netflix 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.
The article Carl Icahn Has 1 Billion Reasons to Love Netflix originally appeared on Fool.com.
Fool contributor Anders Bylund owns shares of Netflix, but he holds no other position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of Netflix. Motley Fool newsletter services have recommended buying shares of Netflix. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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