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:

TECH WRAP

Photo

Exclusive - Obama sharply criticizes China's plans for new technology rules

Barack Obama sharply criticized China's plans for new rules on U.S. tech companies, urging Beijing to change the policy if it wants to do business with the United States and saying he had raised it with President Xi Jinping.  Full Article 

Reuters Showcase

Indian Healthcare

Indian Healthcare

Exclusive - Payment delays dent India's flagship health, AIDS programmes  Full Article 

India-Pakistan Ties

India-Pakistan Ties

Indian, Pakistani foreign secretaries to meet in Islamabad.  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM   Full Article 

Jaitley Speaks

Jaitley Speaks

India needs sustained GDP growth of 9-10 percent - Jaitley.  Full Article 

Obama Interview

Obama Interview

Exclusive - Nemtsov killing sign of worsening climate in Russia: Obama.  Full Article 

Environment Concerns

Environment Concerns

Deforestation could shift monsoons, leaving India high and dry.  Full Article 

Forbes Rich List

Forbes Rich List

Bill Gates tops Forbes rich list, Michael Jordan joins.  Full Article 

New Tour

New Tour

Pop icon Madonna announces dates for 'Rebel Heart' tour.  Full Article 

Lathmar Holi

In Pics: Lathmar Holi

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

Reuters India Mobile

Reuters India Mobile

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