Netflix stock soars on news of Carl Icahn's stake
Seizing on the tumult which has driven the stock price lower, Billionaire investor Carl Icahn has built a 10 percent stake in the Internet video service.
Wednesday's disclosure about Icahn's stake in Netflix caused the company's stock price to surge 14 percent in the latest session.
Icahn's filing with regulators didn't specify why he decided to buy 5.5 million Netflix shares.
But Icahn typically wields his stakes in companies to pressure changes in management and the board of directors. He also frequently pushes for companies to consider selling themselves or to pursue other dramatic changes to boost stock prices.
Netflix's stock has been sagging since the company raised its U.S. prices by as much as 60 percent nearly 16 months ago. The company's earnings have plunged this year.
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