Carl Icahn has acquired a 9.98 percent stake in Netflix, according to a document filed with the Securities and Exchange Commission on Wednesday.
Netflix's share are up more than 15 percent on the day, providing a boost to a company that has taken a beating on Wall Street since last summer.
The filing states that Icahn views the shares as undervalued, adding, "Netflix may hold significant strategic value for a variety of significantly larger companies that are engaging in more direct competition with one another due to the evolution of the internet, mobile, and traditional industry."
In other words, since film studios must better monetize their films online and certain tech companies need quality video content, Icahn sees Netflix as having great value to those larger companies.
Netflix has staked out a user base of 30 million customers streaming videos across the globe, and for years was a Wall Street darling. However, increased competition rising licensing costs and a few strategic missteps have put Netflix in the Wall Street doghouse.
Icahn, above with his wife Gail, has not reached any conclusion about how to maximize Netflix's stock price, but he still forked over millions for 5.5 million shares, according to the filing.