News Summary: Netflix adopts rights plan

News Summary: Netflix enacts shareholder plan to protect against hostile takeover

Associated Press
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FILE - In this Oct. 11, 2007 file photo, private equity investor Carl Icahn speaks at the World Business Forum in New York. On Monday, Nov. 5, 2012, Netflix announced it is moving to protect itself against hostile takeovers, less than a week after activist investor Carl Icahn disclosed that he has accumulated a stake of nearly 10 percent in the online video company. (AP Photo/Mark Lennihan, file)

POISON PILL: Netflix Inc. has adopted a shareholder rights plan, also known as a poison pill. Such a plan is designed to make it difficult or even impossible for someone to take over the company without an agreement from the board.

ICAHN STAKE: The move came less than a week after activist investor Carl Icahn disclosed a stake of nearly 10 percent in the online video company.

RESPONSE: Icahn called the adoption of a poison pill without a shareholder vote "an example of poor corporate governance."

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