* Shares dip a day after Icahn news boosts them 14 pct
* Netflix projects Q4 loss on Nordic start-up costs
By Lisa Richwine
LOS ANGELES, Nov 1 Netflix Inc said on
Thursday it was open to input from billionaire Carl Icahn, the
activist investor who now controls 10 percent of the video
rental company's shares a day after his surprise investment.
"We have many shareholders, now including Mr. Icahn, and
we're always open to their perspective on how to build on our
success," Netflix said in a statement issued in response to
Icahn's disclosure of his investment in a regulatory filing on
The filing said he had bought shares and call options that
gave him a 10 percent stake in the subscription video service.
The activist investor known for shaking up management told
Reuters on Wednesday he felt Netflix was undervalued and would
make "a great acquisition for a number of companies."
Netflix shares jumped 14 percent on Wednesday after Icahn's
stake was disclosed. They slipped 1.6 percent to $77.94 on
Nasdaq on Thursday.
Netflix has been the subject of periodic acquisition
speculation, with potential names tossed around from Microsoft
Corp to Amazon.com Inc. Last Friday, shares
jumped 13 percent after rumors of a potential Microsoft
purchase, which the company and Netflix denied.
An Amazon.com spokeswoman said on Wednesday the company
would not comment on speculation.
Netflix was a Wall Street darling with red-hot growth that
boosted shares as high as $304 in July 2011. Many investors
soured on the company after it imposed an unpopular price rise
in the face of new competition, and increased spending on
content and an international expansion.
Netflix CEO Reed Hastings argues it is worth the investment
to get into foreign markets ahead of rivals. The company
projects a fourth-quarter loss due to start-up costs in four
Janney Montgomery Scott analyst Tony Wible said Icahn's
purchases had generated new optimism among investors, but
cautioned Icahn's entrance "does not assure a turnaround, and
could disrupt growth if he were to challenge management."
"In a best case and least disruptive scenario, he could push
shareholders to embrace a sale of the company," Wible said in a
note to clients. Wible has a "neutral" rating on Netflix shares.