Netflix moves to block a hostile takeover
Netflix moved to protect itself against hostile takeovers, less than a week after activist investor Carl Icahn disclosed a stake of nearly 10 percent in the online video company. Netflix adopted a shareholder rights plan, also known as a poison pill, to make it difficult or even impossible for someone to take over the company without the board’s agreement. When the provision is triggered, additional shares flood the market and make a takeover prohibitively expensive. Netflix said the provision is triggered if a person or group acquires 10 percent of Netflix, or 20 percent in the case of institutional investors, in a deal not board-approved.