Netflix is protecting itself from takeover-hungry Carl Icahn. On November 5 Netflix CEO Reed Hastings announced that the company has a new three-year stockholder rights plan, allowing it to allocate one “right” to each of its outstanding shares, making Netflix’s seizure more difficult by outside parties.
This move comes not a moment too soon, as corporate plunderer Icahn announced last week that he had acquired almost 10% of the online video streaming and DVD service. So far Icahn has also made moves on Time Warner, Blockbuster and Lionsgate, and is known for making billions via large buyouts and pressuring companies’ management to change strategy mid-stream, sell or buy him out at a premium.
Interestingly, Icahn says he believes that Netflix, which has been making a rather awkward transition from DVD rental to online streaming service, is a well-positioned company for the media future.
Netflix’s new rights plan expires on November 2, 2015.