Netflix moves to block a hostile takeover

Associated Press Modified: November 5, 2012 at 12:30 pm •  Published: November 5, 2012
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The company has been stumbling since it raised its U.S. prices by as much as 60 percent last year. That triggered a backlash that resulted in the loss of hundreds of thousands customers and raised concerns on Wall Street that CEO Reed Hastings would have trouble paying for an ambitious plan to expand the company's service into dozens of other countries.

There is some cause for worry. Netflix's earnings through the first nine months of this year have fallen by 95 percent from last year. The company also issued a fourth-quarter forecast that indicated the company might end up with a loss for the full year. This would be Netflix's first annual loss in a decade.

The rights plan expires on Nov. 2, 2015. In a regulatory filing Monday, Icahn called the adoption of a poison pill without a shareholder vote "an example of poor corporate governance."

Netflix shares fell 35 cents to $76.55 in midday trading. The stock has traded in the 52-week range of $52.81 to $133.43. The stock peaked at close to $305 nearly 16 months ago.

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