Hedge Fund Manager Bill Ackman Sells Entire Netflix Stake, Taking $400 Million Loss
Todd Spangler NY Digital EditorAmid the massive sell-off in Netflix stock triggered by the streamer’s Q1 stumble, billionaire hedge fund manager Bill Ackman liquidated his entire holdings in the company citing new uncertainty about Netflix’s long-term business.Ackman’s Pershing Square Capital Management had acquired about 3.1 million Netflix shares in January. On Thursday, the firm sold that stake — resulting in about a $400 million loss on the investment.In a letter to Pershing shareholders, Ackman cited Netflix’s plans to adopt a lower-cost, ad-supported streaming plan and to try to monetize on password-sharing users as introducing new X-factors that threw off his original analysis of the company’s prospects.