News Summary: Netflix adopts poison pill
THE PLAN: Netflix 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.
THE PROMPT: It comes less than a week after activist investor Carl Icahn disclosed a stake of nearly 10 percent in the online video company.
THE TRIGGER: Netflix says the provision is triggered if a person or group acquires 10 percent of Netflix, or 20 percent in the case of institutional investors, in a deal not approved by the board.
