Netflix Moves To Block Hostile Takeover
LOS GATOS (CBS/AP) — Less than a week after activist investor Carl Icahn announced a 10 percent stake in Netflix, the online video company is moving to protect itself against hostile takeovers.
The Los Gatos, company said Monday that it has adopted a shareholder rights plan.
Icahn disclosed his stake in Netflix Wednesday.
Under the plan, rights are exercisable 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.
Netflix Inc. said its plan isn’t intended to interfere with a transaction that’s approved by its board.
Shares were down 99 cents to $75.91 in morning trading.
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