• 23 Oct 2013 at 2:32 PM

But Daaad! Netflix Has So Much More Growth Potential!

As you may have heard, starting October 10, Carl Icahn sold 2.99 million shares of Netflix. His son Brett, who works for the old man, thought this was a mistake. So that no one felt like their voice wasn’t being heard, a filing disclosing the sale included statements by both parties, “exposing [the] disagreement” between Senior and Junior. Brett’s lays out his investment thesis. Carl’s, which reads like he addressed it to Brett and then changed it to “Dear SEC”, is essentially:

“Listen up, Sonny Boy. I know you think you’ve learned a thing or two and that’s great. But step aside, Big Daddy’s got money to make.”

Icahn sold 2.99 million shares of Los Gatos, California-based Netflix starting on Oct. 10, as it approached new highs, according to a regulatory filing yesterday. He continues to own 2.67 million shares, or a 4.5 percent stake. The investor and his son outlined their differences in a statement. Icahn said the decision to sell was his, and it was time to collect profit, while Brett Icahn and fund co-manager David Schechter argued Netflix still has significant growth potential. The pair rewrote their contracts so the performance fee they receive from Carl Icahn will reflect any subsequent gains or losses on the Netflix shares sold at his direction. Icahn, 77, said his cost was about $58 a share, suggesting a gain of almost $800 million from the transactions. “As a hardened veteran of seven bear markets I have learned that when you are lucky and/or smart enough to have made a total return of 457 percent in only 14 months it is time to take some of the chips off the table,” Icahn said. He didn’t respond to a call for further comment.

Icahn’s Netflix Sale Shows Difference With Son Over Value [Bloomberg]

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Comments (12)

  1. Posted by Crying Jewish Boy | October 23, 2013 at 2:44 PM

    Just to clarify here Brett, when dad offered to write you schmuck insurance on NFLX he was not in fact making any warranties about either of you not being complete schmucks.

  2. Posted by guest | October 23, 2013 at 2:55 PM

    instant stream…of tears

  3. Posted by Guest | October 23, 2013 at 3:06 PM

    To conclude his statement, Icahn said, "But at least my son is making a name for himself, while another nameless jabroni from Westchester I know can't even make a son."

    Bill Ackman could not be reached for comment.

  4. Posted by Im_a_Dude | October 23, 2013 at 3:18 PM

    riding the citibike for too long can do that

  5. Posted by Guest | October 23, 2013 at 3:41 PM

    " The pair rewrote their contracts so the performance fee they receive from Carl Icahn will reflect any subsequent gains or losses on the Netflix shares sold at his direction."

    I really hope he wrote it so that Icahn Jr. would have to physically cut a check for the rebate on the management fee in the event the price goes down, just to maximize the gloating potential.

  6. Posted by Lord Humongous | October 23, 2013 at 5:02 PM

    "No, it was the ride in the Hamptons with that slacker Loeb. That was a ballbuster."

    - BA

  7. Posted by schm0e | October 23, 2013 at 5:39 PM

    Bess, you didn't really write this, did you? Did you disable your grammar-checker?

  8. Posted by guest | October 23, 2013 at 6:27 PM

    Er, there is one instance in which though should have been thought. Settle down francis.

  9. Posted by guest | October 23, 2013 at 6:49 PM

    Son, you're old man has screwed a lot of whores over the years, and sometimes if you stay in too long the condom breaks. This deal is the condom I wish I had 33 years ago

    -Carl Sr.

  10. Posted by Details guy | October 23, 2013 at 8:42 PM

    It's: Lighten up Francis.

  11. Posted by Guest | October 24, 2013 at 7:19 AM

    I'm short Ichan's wealth once he passes and his son takes over.

  12. Posted by inlovewithpmco | October 24, 2013 at 12:29 PM

    Brett, go get your shine box

    -dad