Carl Icahn Lost a $15 Million Dollar Bet to His Son on Netflix

Carl Icahn Lost a $15 Million Dollar Bet to His Son on Netflix

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Carl Icahn's son is winning their bet about Netflix. Since selling shares, Netflix has climbed and climbed.

Carl Icahn has made a fortune in risk arbitrage and hostile takeovers. The one for which he is most famous, his takeover of the storied airline TWA, netted him almost a billion dollars when he bought the company's debt and sold its best assets, a practice which was later called asset stripping.

Since then Icahn gained a reputation as an activist investor, one who's not afraid of sharing his opinions with major CEOs, as well as the Twittersphere. Since he took to social media, a number of articles have been written tracking stocks that jump whenever Icahn tweets about them.

He's also done pretty well in technology. Icahn made over $800 million as an early stakeholder in Netflix (NFLX), before selling about half his shares last year. 

But his son Brett, who works for his father at Icahn Enterprises (IEP), disagreed with the sale. They made a bet that Netflix would continue to rise, which it did, about 20% so far. As a result, the younger Icahn will get an adjusted share of the funds' earnings, to account for what he would have gotten if they had held Netflix for longer.

Brett's? A cool $15 million

Not bad, Grasshopper. Two generations of investing wisdom in the same fund? Seems like something that's worth paying attention to. So we decided to look up some of Icahn's other holdings. 

Click on the interactive chart below to view data over time. 

Do you see investing opportunities in some of Carl Icahn's biggest holdings? Use the list below to begin your own analysis. Included are the weightings in Icahn's portfolio as of 9-30-2013.

1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets PCs, mobile devices, and portable digital music players, and sells related software, services, and third-party digital applications. Market cap at $495.01B, most recent closing price at $556.18.

Weighting: 7.5%

 

2. Federal-Mogul Corp. (FDML, Earnings, Analysts, Financials): Supplies powertrain and safety technologies worldwide. Market cap at $2.76B, most recent closing price at $19.68.

Weighting: 8.3%
 

 

3. Nuance Communications, Inc. (NUAN, Earnings, Analysts, Financials): Provides voice and language solutions for businesses and consumers worldwide. Market cap at $4.88B, most recent closing price at $15.79.

Weighting: 4%
 

 

4. Chesapeake Energy Corporation (CHK, Earnings, Analysts, Financials): Engages in the acquisition, development, exploration, and production of natural gas and oil properties in the United States. Market cap at $17.47B, most recent closing price at $26.90.

Weighting: 7%
 

 

5. Icahn Enterprises, L.P. (IEP, Earnings, Analysts, Financials): Engages in investment management, automotive, gaming, railcar, food packaging, metals, real estate, and home fashion businesses. Market cap at $12.61B, most recent closing price at $114.92.

Weighting: 33.9%
 

 

6. Talisman Energy Inc. (TLM, Earnings, Analysts, Financials): Engages in the exploration, development, production, transportation, and marketing of crude oil, natural gas, and natural gas liquids. Market cap at $11.80B, most recent closing price at $11.68.

Weighting: 0.3%
 

 

7. Navistar International Corporation (NAV, Earnings, Analysts, Financials): Manufactures and sells commercial and military trucks, buses, diesel engines, recreational vehicles (RVs), and chassis. Market cap at $2.73B, most recent closing price at $35.15.

Weighting: 2%

 

 

(List compiled by James Dennin. Carl Ichan's holdings sourced from GuruFocus. Analyst ratings sourced from Zacks Investment Research, all other data sourced from Finviz.)

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7 responses to “Carl Icahn Lost a $15 Million Dollar Bet to His Son on Netflix”

  1. Sandra says:

    It seems like as if Icahn's son will step in his footsteps – Netflix is currently investing a lot in Europe, I wonder if they will be able to become as successful there as in the US.

    • hubnames says:

      Pretty good list. My personal guideline is just to respond in a genuine way to what interests me. I find comments with agendas, whether it’s self-promotion or ideology, tedious and obvious. I disagree with the "say something about yourself" bit, though. On the internet, where anybody can be anything and nobody knows different, it’s used so often as a tactic to shut down other opinions, that to me it reads like a grab at false authority.

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