Netflix moves to block Carl Icahn's hostile takeover move

An exterior view of Netflix headquarters in Los Gatos, Calif., Tuesday, Jan. 26, 2010. (AP / Marcio Jose Sanchez)

NEW YORK -- Less than a week after activist investor Carl Icahn announced a 10 per cent stake in Netflix, the online video company is moving to protect itself against hostile takeovers.

The Los Gatos, Calif., company said Monday that it has adopted a shareholder rights plan.

Icahn disclosed his stake in Netflix Wednesday.

Under the plan, rights are exercisable if a person or group acquires 10 per cent of Netflix, or 20 per cent in the case of institutional investors, in a deal not approved by the board.

Netflix Inc. says its plan isn't intended to interfere with a transaction that's approved by its board.

Shares are down 99 cents to $75.91 in morning trading.