Tuesday, April 23, 2013

How to Make $800 Million in 6 Months, Carl Icahn Edition





From WSJ: Back in January Netflix NFLX +6.73% disclosed that in late 2012, activist investor Carl Icahn had acquired about 10% of the company, at an average price of $58 per share. That means his stake of just over 5.5 million shares would have set him back about $321 million.

Mr. Icahn’s final intentions may still be a work in progress, but the “more valuable” part has certainly happened: After reporting positive first quarter results today, Netflix stock is up almost 25% in after-hours trading, at about $217 per share on Monday evening. That values the company at about $11.2 billion, and Mr. Icahn’s stake somewhere north of $1.1 billion.  On paper, that’s a tidy little $800 million profit in six months….

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