[Asia Economy Reporter Jeong Hyunjin] William Ackman, a prominent American hedge fund manager, recently purchased more than 3 million shares of Netflix, whose stock price has significantly dropped, according to reports by The Wall Street Journal (WSJ) and others on the 26th (local time).
According to the reports, Ackman tweeted on the same day, "I have long viewed Reed Hastings, CEO of Netflix, and his company positively," adding, "Thankful that the market has given us an opportunity."
Netflix's stock price has been on a downward trend recently. After reaching $691.69 in November last year, Netflix's stock price plunged and closed at $359.70 on the day. The market reacted to concerns becoming reality as Netflix's growth slowed, with new subscribers last year totaling 18 million, the lowest since 2015.
In response, Pershing Square, led by Ackman, purchased 3.1 million shares of Netflix and informed investors that it had entered the top 20 Netflix shareholders. Based on recent stock prices, this amounts to over $1 billion, and Pershing Square's stake in Netflix is estimated at about 0.7%.
On the same day, Ackman mentioned in a letter to investors that he is aware of market concerns about Netflix's growth but views the subscription business model positively and is "all in."
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