- Obama downplays IRS scandal, blames Obamacare rollout on ‘outdated’ agencies
- Pregnancies decline overall, up among older women
- Pentagon plans to destroy Syrian chemical arms on ship at sea
- Paris Metro issues ‘politeness manual’ to improve passengers’ behavior
- Justin Bieber, crew detained at Australian airport in drug search
- Lee Rigby trial: Muslim who machete-hacked soldier calls it ‘humane’ kill
- GM ending Chevy sales in Europe to focus on Opel and Vauxhall
- Putin’s diplomats to U.S. busted for living high life off $1.5M bilked from Medicaid
- Happy Meal: Couple goes to McDonald’s, leaves with bag packed with cash
- Boehner: It took me 3 to 4 hours to sign up for Obamacare
Netflix moves to block a hostile takeover
NEW YORK (AP) - Netflix is moving to protect itself against hostile takeovers, less than a week after activist investor Carl Icahn disclosed a stake of nearly 10 percent in the online video company.
Netflix Inc. said Monday that it has adopted a shareholder rights plan, also known as a poison pill. Such a plan is designed to make it difficult or even impossible for someone to take over the company without an agreement from the board. When the provision is triggered, additional shares flood the market and make it prohibitively expensive for a takeover.
Netflix said the provision is triggered if a person or group acquires 10 percent of Netflix, or 20 percent in the case of institutional investors, in a deal not approved by the board. The Los Gatos, Calif.-company said that its plan isn't intended to interfere with a board-approved transaction.
"Adopting a rights plan is a very reasonable thing to do in light of the recent accumulation of a lot of Netflix stock by an activist shareholder," spokesman Jonathan Friedland said.
Icahn disclosed last Wednesday that he spent some of his $14 billion fortune on his 10 percent stake. The documents he filed didn't disclose why Icahn and his investment funds have been buying 5.5 million Netflix shares since early September. But it's likely that he would press Netflix to make dramatic changes to boost its stock price.
The company has been stumbling since it raised its U.S. prices by as much as 60 percent last year. That triggered a backlash that resulted in the loss of hundreds of thousands customers and raised concerns on Wall Street that CEO Reed Hastings would have trouble paying for an ambitious plan to expand the company's service into dozens of other countries.
There is some cause for worry. Netflix's earnings through the first nine months of this year have fallen by 95 percent from last year. The company also issued a fourth-quarter forecast that indicated the company might end up with a loss for the full year. This would be Netflix's first annual loss in a decade.
The rights plan expires on Nov. 2, 2015. In a regulatory filing Monday, Icahn called the adoption of a poison pill without a shareholder vote "an example of poor corporate governance."
Netflix shares fell 35 cents to $76.55 in midday trading. The stock has traded in the 52-week range of $52.81 to $133.43. The stock peaked at close to $305 nearly 16 months ago.
- 'Hunger Games' delivers Obama's message on income inequality: liberal group
- CARSON: Getting to the top by starting at the bottom
- Hack attack: 2 million Facebook, Twitter passwords stolen
- NAPOLITANO: Pope Francis should be saving souls, not pocketbooks
- Nelson Mandela, South Africa's first black president, dies at age 95
- Allen West warns Obamas backdoor gun control is moving forward
- Obama lived with Uncle Onyango Obama in the 1980s, White House admits
- Russian diplomats busted bilking $1.5 million from Medicaid
- Inside China: Nuclear submarines capable of widespread attack on U.S.
- U.S. drops 2,000 mice on Guam by parachute to kill snakes
Independent voices from the The Washington Times Communities
Interviews and show reviews from the Los Angeles punk scene past and present. Los Angeles has always been rich in punk rock talent since punk rock was born.
NFL junkie Eric Golub reports on his favorite obsession. There is no football offseason. Every February he pretends to care about other sports while sobbing uncontrollably each Sunday until September.
All of the world’s problems, solved on your back porch
Brazen, leading-edge, “call it like it is” columns and reporting from Ohio native, radio host and writer, Sara Marie Brenner.
White House pets gone wild!