Netflix adopts poison pill defense after Icahn stake

Mon Nov 5, 2012 8:26pm IST

The headquarters of Netflix is shown in Los Gatos, California September 20, 2011. REUTERS/Robert Galbraith/Files

The headquarters of Netflix is shown in Los Gatos, California September 20, 2011.

Credit: Reuters/Robert Galbraith/Files

Related Topics

Stocks

   

(Reuters) - Netflix Inc (NFLX.O) has adopted a poison pill defense against a hostile takeover, it said on Monday, days after activist investor Carl Icahn disclosed a stake in the video rental company.

Shares of Netflix fell 1.3 percent to $75.90 in early Nasdaq trading.

The shareholder rights plan is aimed at preventing an outsider not approved by the Netflix board from accumulating a stake of 10 percent or more, the company said in a statement. The board approved the provision on Friday. It remains in effect for three years.

On Wednesday, Icahn disclosed that he had amassed control of 10 percent of Netflix shares, but most of his purchases were in the form of call options. The billionaire, who is known for shaking up management, said he saw Netflix as an attractive takeover target for a number of companies.

The shareholder rights plan is not intended to interfere with any merger, tender or exchange offer, or other business combination approved by the board, Netflix said in a statement.

(Reporting by Lisa Richwine in Los Angeles and Sruthi Ramakrishnan in Bangalore; Editing by Saumyadeb Chakrabarty and Lisa Von Ahn)

FILED UNDER:

Reuters Showcase

Putin Critic Killed

Putin Critic Killed

Russians march in memory of murdered Putin critic.  Full Article 

Pakistan's First Win

Pakistan's First Win

Irfan bounces Zimbabwe out as Pakistan claim first win.  Full Article 

Budget 2015

Budget 2015

Full coverage of 2015/16 budget.  Full Coverage 

Hacked to Death

Hacked to Death

Bangladesh pays tribute to U.S. blogger killed in machete attack.  Full Article 

The Apple Car

The Apple Car

Apple car rumours fuel Geneva debate about car of future.  Full Article 

Movie Review

Movie Review

"Dum Laga Ke Haisha" is rooted in reality, writes Shilpa Jamkhandikar.  Full Article | Related Story 

Crowded Market

Crowded Market

China's Huawei enters smartwatch frenzy with round-face models.  Full Article 

Lathmar Holi

In Pics: Lathmar Holi

Images of "Lathmar Holi" at Nandgaon in Uttar Pradesh.  Full Coverage 

World Cup 2015

World Cup 2015

Full coverage of cricket world cup in Australia and New Zealand.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage