Netflix at 100 Times Profit Means Tough Sale for Icahn

After failing to strike deals for companies from Lions Gate Entertainment Corp. to Mentor Graphics Corp., Carl Icahn now must convince suitors that Netflix Inc. deserves one of the highest valuations in America.

The billionaire investor disclosed this week that he took a 10 percent stake in Netflix, and said Amazon.com Inc. and Verizon Communications Inc. could seek to buy the world’s largest streaming service as a way to capture the lead in online video. Netflix, after plunging 74 percent from its high last July, still trades for 102 times this year’s estimated profit, the second-highest price-earnings multiple in the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

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