Apple 'Cheerleader' Icahn Dumps All His Stock

Billionaire is worried about China's influence, barriers against company
By Jenn Gidman,  Newser Staff
Posted Apr 29, 2016 11:42 AM CDT
Apple 'Cheerleader' Icahn Dumps All His Stock
In this Oct. 11, 2007, file photo, Carl Icahn speak in New York.   (AP Photo/Mark Lennihan, file)

Just a few years ago, Carl Icahn opened his wallet to invest in Apple, calling such a move a "no-brainer," and became what the Guardian calls a "huge cheerleader" for the tech company. But that all changed this week as the billionaire investor made a decision to dump his entire stake, citing interference from China—Apple's second-largest market—and worries that the country would keep putting up barriers to Apple doing business there. (One such barrier: China "mysteriously suspended" the iTunes movies and iBook stores earlier this month.) "They're basically … a benevolent dictatorship," he said, though "I don't know if benevolent is the right word." And so "we no longer have a position in Apple," Icahn said in a CNBC interview Thursday, per Reuters.

"Tim Cook did a great job," he continued. "I called him this morning to tell him that and he was a little sorry, obviously. But I told him … it's a great company." Forbes notes that Icahn's trade wasn't a total shock, as he had started getting rid of large chunks of shares last year (he sold off $700 million worth of shares late last year). What he just sold off amounted to a nearly 1% stake, per the Los Angeles Times. The 80-year-old said he made about $2 billion on Apple. But is he out for good? Icahn said he'd get back into Apple if China "basically steadied." (Apple this week experienced a drop in quarterly revenue for the first time 13 years.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.