Netflix Adopts Stockholder Rights Plan to Protect Against a Hostile Takeover
Video streaming service Netflix is protecting against a hostile takeover with the adoption of a stockholder rights plan, the company announced today. According to Netflix, "The Rights Plan is intended to protect Netflix and its stockholders from efforts to obtain control of Netflix that the Board of Directors determines are not in the best interests of Netflix and its stockholders, and to enable all stockholders to realize the long-term value of their investment in Netflix." According to everyone else, the Rights Plan is intended to stop investor Carl Icahn from purchasing more of the company than he already has.
Video streaming service Netflix is protecting against a hostile takeover with the adoption of a stockholder rights plan, the company announced today.
The plan gives each shareholder a dividend distribution of one right per outstanding share of common stock. If a person or group acquires 10 percent of the company or more (or 20 percent for institutional investors filing on Schedule 13G), each right will allow shareholders to buy one one-thousandth of a share of a new series of participating preferred stock for $350 apiece.
According
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