Blockbuster Antagonist Carl Icahn Background Story

The Star-Telegram has a background story on Blockbuster antagonist Carl Icahn.

Icahn wants Blockbuster to concentrate on its core business, cut costs and pay out $330 million in dividends. As for Antioco's $51.6 million compensation package for 2004, Icahn called it "unconscionable." And he said Blockbuster made a "grave error" in abandoning its attempt to buy rival Hollywood Entertainment, which was snapped up by Movie Gallery at a cheaper price. He also has said that Blockbuster should be sold.

In a stinging letter April 7, Icahn announced his intention to run a dissident slate of three candidates for each of the board seats up for a vote, including Antioco's. The three include Icahn and two respected entertainment industry veterans, whose names immediately drew praise from some analysts.

Worth an estimated $7.6 billion and with a track record of being a ruthless corporate raider, I wouldn't want this guy after my job.

Comments

[Gordon Gekko]

guess he's giving lectures on how to lose money...if this guy opened a funeral parlor, no one would die. This turkey is totally braindead! Well Christmas is over and business is business. I want every orifice in his body flowing red.

[bholio]

I wouldn't mind someone going after my $50M per year job, during my 2nd year of employment, that is..

[Davis Freeberg]

From what I've read. Icahn is too leveraged to do any damage to BBI. Their stock will stall until they get this worked out and by then Netflix will have added another 3 Million subscribers. I was returning a video game to Blockbuster the other night and the manager told me all the stores are cutting back hours because of Icahn. I bet their marketing budget has been completely slashed too. If Icahn gets his dividend, then the company will go bankrupt within five years.

Davis,
I saw from your web sit you go to great lengths to try and refute wall street concensus on blockbuster's advantage.

I think you need to brush up a bit on your termenology and investing 101. Thereis no Icahn proxy fight. That is why Icahn is trying his best to make it a public fight (a sure sign he laready lost).

As far as Blockbuster lowering its hours because of Icahn, my local blockbuster just increased it's hours.

you buried in your anaylis the fact that Netflix credit rating was just lowered by the main rating services. this is much more telling than amatuer ramblings and does not bode well.

[Don Corleone]

to the above poster:

Netflix does not have a credit rating. It does not have any debt. It never has and probably never will have either of them. I don't know how you could have missed that... sounds very amatuer [sic] and does not bode well.