Oct. 23 - Icahn family drama ends with dad Carl cutting Netflix stake, pocketing $800 million profit, while son Brett still sees more room to grow. Bobbi Rebell reports.
Talk about rich people problems. A family squabble for the Icahns. With Netflix stock soaring - billionaire investor Carl Icahn felt it was time to take profits on his 9.4 percent stake. But son Brett- who had convinced Carl to stick with the investment even as it hit the stratosphere- wanted to stick with the winner. In the end- a compromise. Carl Icahn cut his Netflix stake- pocketing $800 million- thanking CEO Reed Hastings as well as actor Kevin Spacey for a job well done. A no wonder- Icahn made 457 percent profit in a bit more than a year. Building that stake- he paid an average price of $58 a share. Sales of the 3 million shares he unloaded, which took place over the last couple of weeks, were made public in an SEC filing. The compromise: Icahn Enterprises will still maintain a stake of 4.5 percent- and son Brett and another fund manager will have their compensation tied to the performance of Netflix. They still think Netflix is undervalued- believing that it will continue to add subscribers at a strong pace, expand internationally, and believe they could raise the price over the next 5 years from $7.99 to $9.99 without much consumer pushback.