Icahn on CNBC says his son was right on Netflix, wished he bought more

Reuters News
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Posted: Jan 28, 2015 1:43 PM

NEW YORK (Reuters) - Billionaire activist investor Carl Icahn said on Wednesday that he sold Netflix Inc <NFLX.O> shares too soon, admitting that his son Brett and fund co-manager David Schechter were correct to believe the stock was significantly undervalued.

Icahn sold 2.99 million shares of Los Gatos, California-based Netflix in October 2013 after the stock rose more than fivefold in 14 months.

"What I was worried about and conservative about Netflix - and obviously I wished I hadn't been as conservative - was 'net neutrality.' which has seemed to go away," Icahn said in an appearance on CNBC, referring to the U.S. Federal Communications Commission's work to set new regulations for Internet service providers.

"That one storm cloud has gone away so I agree completely now with Brett and Dave on Netflix. I wished I had bought more, but hey, look, you can't cry about making the money that we made on it," he said.

Icahn, whose Icahn Enterprises acquired Netflix shares for an average price of $58, booked profits on the stock of between $700 million and $800 million in the fall of 2013.

Nearly a year ago, Netflix shares were trading at about $386 per share. On Wednesday, the stock was changing hands at around $448.72 per share.

Brett Icahn added: "Like we've said in the past, Netflix remains significantly undervalued."

(Reporting by Jennifer Ablan, editing by G Crosse)