The Carl Icahn Valuation

What we've been working on.

You can now get the first month of Activist Ideas for $9.99. Check it out here. Or if you’re ready for the big time, try the super premium activist strategy for $125 per month here. If you want a look at one of our top Activist Strategy features, the weekend email, click here. Now for the goods: Some issues with Time Warner splitting up. It’s been said - “Splitting up can destroy value.” Just look at how Viacom’s struggling stock price since it was split up a decade ago. So the outright buyout is the likely play here. Buyers? Many have been floated - including Apple, Google and Amazon, with Amazon being the most aggressive of the digital players in going after the digital rights for Thursday Night Football with the NFL. Valuing Carl Icahn’s $IEP - it doesn’t look good. The Carl Icahn premium is real, but is it too extreme right now? Of late, the NAV of IEP has decreased 25.0%, but the stock price has only declined 7% leading to a current P/TBV of 163%. To put this in perspective, this puts IEP's premium to NAV at the highest amount in the history. Here’s the valuation: Worth re-reading this comment from Dec. from Icahn. “I don’t think anybody thought it would be this bad because you obviously have the Middle East, Saudi Arabia just keep pumping and pumping and pumping oil,” he said. “And that’s a secular change that you can’t do anything about. It’s a political thing also. I think it will, it could very easily get worse. And eventually, I think it will get better, but it could get worse,” he added. SpringOwl puts out a presentation on Viacom. Here’s the highlights. Corporate governance issues - only about a quarter of the board is independent and with 11 board members has one of the largest boards in the media space Sumner Redstone misses shareholder meetings and earnings calls. No real succession plan for Sumner. Need a new chairman. CEO is overpaid. New CEO with digital experience needed. CEO helped make Netflix stronger by licensing so much content to them. Then went after YouTube for copyright issues instead of working with them to promote their brand. Costs running above peers. No digital presence or investments, unlike peers. No OTT offerings besides $5.99 a month Noggin for pre-schoolers. Calls Viacom Creatively Bankrupt. ABOUT US Copyright © 2016 Activist Stocks, All rights reserved. You signed up to our lite newsletter via our landing page. Our mailing address is: Activist Stocks 20 East Third Street Charlotte, NC 28202