Just days after Netflix adopted a stockholder rights plan designed to prevent certain parties from launching a hostile takeover bid, billionaire investor Carl Icahn has described the move as a “travesty in corporate governance”.
Icahn – who has been rumoured to be preparing a takeover bid of the video streaming service after purchasing a stake equivalent to just under 10% – told US news channel CNBC that he sees the move as “really reprehensible”.
He added that he has already thought about whether to launch a bid for the company: “The thought has certainly crossed my mind. It certainly is one alternative, but I have to say we haven’t made that decision at this point.”
The investor also commented that he believes Netflix to be undervalued at present, with a “great platform” and 27mn subscribers, but added that it lacks the deep pockets necessary to take full advantage of its position.