News Summary: Icahn sees potential in Netflix
OPPORTUNISTIC INVESTOR: Billionaire Carl Icahn disclosed Wednesday that he and his investment funds have accumulated a 10 percent stake in Netflix Inc. Icahn told The Associated Press he is interested in the Internet video subscription service because he believes it's "very undervalued."
MARKET REACTION: Netflix's slumping stock price soared nearly 14 percent after investors learned about Icahn's large stake. The rapid run-up reflected Icahn's long history of wielding his investments to pressure companies to make dramatic changes to boost the stock price.
POSSIBLE ACQUISITION: Icahn told the AP he viewed Netflix's potential as a takeover target as a "bonus."