Icahn, widely dubbed as an activist-investor for his aggressive approach in business dealings, reportedly acquired 5.4 million shares of stock in the company for $168.9million.
Icahn’s purchase of NetFlix’s stock also includes a call options, giving him a much greater influence in the company.
Apparently, Icahn’s greater role with Netflix immediately brought positive outcome for the company as its shares took a 15 percent jump minutes after the renowned investor completed his purchase.
“We have many shareholders, now including Mr. Icahn, and we’re always open to their perspective on how to build on our success,” a Netflix representative told CNET in an e-mailed statement.
However, some business analysts believes Icahn’s move to acquire more stocks only suggested that NetFlix are in a position to become a more active player in this line of business.
There are also rumors the business magnate is working out a deal with Microsoft to buy the streaming-video company – a move which could give NetFlix more financial stability and further strengthen its market value.
“Netflix may hold significant strategic value…for larger companies,” said Icahn.
With Icahn’s steady rise to power, Netflix’s decision to listen to the investors’ strategic advice proves that its present board is doing everything to avoid any problems with the business mogul.
In 2008, Icahn held about 5 percent of Yahoo stock and strongly pushed a Microsoft deal. Eventually, Icahn’s experience and influence prevailed as he went on to oust Yahoo’s board of directors and substitute them with his own front office executives.
Ultimately, Yahoo settled the score with Icahn, awarding him and two others seats on Yahoo’s board. However, Icahn abandoned Yahoo’s board in 2009 after selling off an enormous amount of his shares.