Netflix moves to block a hostile takeover

Netflix moves to block a hostile takeover

Credit: Getty Images

SAN FRANCISCO, CA - OCTOBER 24: A U.S. Postal worker holds a stack of Netflix envelopes at the U.S. Post Office sort facility on October 24, 2011 in San Francisco, California. Online movie rental company Netflix reported third quarter earnings of $62.5 million, or $1.16, per share compared to $38 million, or 70 cents per share one year ago. (Photo by Justin Sullivan/Getty Images)

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KMOV.com

Posted on November 5, 2012 at 10:37 AM

NEW YORK (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, Calif., 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. says its plan isn't intended to interfere with a transaction that's approved by its board.

   Shares are down 99 cents to $75.91 in morning trading.
 

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