Netflix surges after Icahn grabs stake

Netflix shares surged Wednesday on news that corporate raider Carl Icahn had acquired a stake of nearly 10 percent in the online video giant. A filing with the Securities and Exchange Commission showed Icahn had acquired some 5.5 million shares or 9.9 percent through various investment firms he controls, starting in September. Netflix rallied as much as 22 percent on the news, and closed up 13.8 percent at $79.17. Icahn is known for buying up stakes in a company, in some cases seeking control to restructure a firm. In other cases he may resell a stake for a profit. He is known for taking large or controlling stakes in firms such as TWA, MGM and Yahoo. Netflix said recently it now has more than 30 million subscribers worldwide, including some five million outside the United States as the Internet video service pursues a global expansion. Netflix reported a fall in profit to $7.7 million in the past quarter on revenues of $905 million.