Carl Icahn

Carl Icahn
Carl Icahn
Born	Carl Celian Icahn; February 16, 1936 (age 90); Brooklyn, New York, U.S.
Occupation(s)	Entrepreneur, investor
Years active	1961–present
Known for	Founder and controlling shareholder of Icahn Enterprises; activist shareholder model pioneer

Carl Celian Icahn (; born February 16, 1936) is an American entrepreneur and investor. He established and holds a controlling interest in Icahn Enterprises, a publicly traded diversified holding company headquartered in Sunny Isles Beach, Florida. Icahn’s investment approach centers on acquiring significant shares in companies he believes can increase in value through strategic corporate changes, subsequently advocating for management to adopt these reforms to enhance shareholder returns. Widely acknowledged as one of the most accomplished hedge fund managers and investors on Wall Street, he was instrumental in advancing the activist shareholder model, contributing to its widespread adoption among hedge funds.

During the 1980s, Icahn became well-known as a "corporate raider" by capitalizing on the hostile takeover and dismantling of Trans World Airlines.

He appears on the Forbes 400 list with an estimated net worth ranging from $6.7 billion to $7 billion.

Since 2011, Icahn has ceased managing external client funds; however, investors continue to access opportunities through Icahn Enterprises.

Early life and education

Born on February 16, 1936, in Brooklyn, New York, Icahn was raised in an Ashkenazi Jewish household. He grew up in the Far Rockaway area of Queens, attending Far Rockaway High School. His father, Michael Icahn, identified as a "sworn atheist" and worked both as a cantor and later a substitute teacher. His mother, Bella (née Schnall), was employed as a schoolteacher.

Icahn earned his A.B. degree in philosophy from Princeton University in 1957, completing a senior thesis titled "The Problem of Formulating an Adequate Explication of the Empiricist Criterion of Meaning." He briefly enrolled at New York University School of Medicine but departed after two years to serve in the Army Reserve.

1961–2005

Icahn’s professional journey began in 1961 as a stockbroker at Dreyfus Corporation. By 1963, he had advanced to options manager positions at Tessel, Patrick & Co., followed by a move to Gruntal & Co.

In 1968, leveraging $150,000 of personal capital along with $400,000 provided by his uncle M. Elliot Schnall, Icahn purchased a seat on the New York Stock Exchange and launched Icahn & Co., concentrating on risk arbitrage and options trading.

He acquired a controlling interest in Tappan in 1978 and orchestrated its sale to Electrolux, doubling his initial investment with profits totaling $2.7 million. Subsequent acquisitions included Bayswater Realty & Capital Corporation in 1979 and ACF Industries in 1983; he sold ACF Industries to Phillips Petroleum in 1985 for a gain of $50 million.

In 1985, combining his own funds with those from investors and bank financing, Icahn purchased half of Trans World Airlines, completing a leveraged buyout by 1988. To repay incurred debt, he sold off TWA’s assets, generating $469 million in profit but leaving $540 million outstanding debt for the company. Among notable transactions was the sale of TWA’s London routes to American Airlines for $445 million and the launch of lowestfare.com for ticket sales.

In October 1986, Icahn initiated an unsuccessful hostile takeover bid valued at $8 billion for an 89% stake in U.S. Steel, withdrawing the offer by January 1987. By 1991, he divested his holdings for $1 billion, realizing a profit of $200 million.

Icahn sold his position in Texaco for $2 billion in June 1989, earning approximately $700 million.

He made a $375 million bid for Pan Am in 1990. In 1994, he acquired a 6.6% share in Western Company of North America amid its acquisition by BJ Services. By February 1997, he sold a 7.3% stake in RJR Nabisco, securing a $125 million profit.

In June 1997, Icahn gained control over Marvel Comics, engaging in competition with Ronald Perelman. In March 1998, he renewed his pursuit of Pan Am with a $43 million bid. Later that year, he led an investor consortium acquiring a 5% stake in RJR Nabisco and advocated for splitting its tobacco and food divisions.

In July 2001, Icahn’s Riverdale LLC provided GenesisIntermedia with a $100 million loan secured by options to purchase shares.

By 2004, he was raising $3 billion to establish the Icahn Partners hedge fund and had acquired stakes in both Blockbuster Video and Time Warner. After Mylan announced plans for a $4 billion stock acquisition of King Pharmaceuticals, Icahn purchased significant shares and threatened a proxy contest against the deal. Mylan ultimately withdrew its acquisition attempt in February 2005.

2005–2010

In 2005, XO Communications intended to divest its wired operations for $700 million to Carl Icahn, who was then chairman and a principal shareholder; the funds would have been used to settle debt and repurchase preferred shares from Icahn. This transaction would have granted Icahn full control over the wired division while preserving his 60% ownership in XO. Nevertheless, minority investors opposed the agreement in 2008, citing conflicts of interest involving Icahn.

By August 2006, Icahn had increased his holdings in Take-Two Interactive, reaching an 11.3% ownership by 2009, making him the second-largest shareholder. In January 2007, he acquired a 9.2% stake in biotech company Telik and also purchased shares in WCI Communities, which was later taken over by Lennar.

Despite holding a 3% stake, Icahn's attempt to join Motorola’s board in May 2007 was unsuccessful. Earlier that year, in February, Lear Corporation accepted his $2.3 billion acquisition offer. Additionally, he invested $50 million into Motricity, a firm specializing in mobile content delivery.

By September 2007, Icahn had increased his ownership in BEA Systems to 13.22%, supporting its subsequent $8.5 billion acquisition by Oracle Corporation. He also steadily expanded his position in Biogen starting that year.

In April 2007, Icahn sold casino properties in Nevada managed through American Casino & Entertainment Properties for $1.3 billion to a Goldman Sachs affiliate, realizing a profit of $1 billion.

In March 2008, he initiated litigation against Motorola aiming to secure board control and advocate for the sale of its mobile division. By May 2008, Icahn had acquired a significant stake in Yahoo! and threatened a proxy contest following Microsoft's rejected takeover proposal, which resulted in an enlarged board including Icahn and two associates.

June 2008 saw the launch of The Icahn Report blog by Icahn. Later that year, he was involved in the unsuccessful Bristol-Myers Squibb bid for Imclone and its eventual $6.5 billion acquisition by Eli Lilly.

In December 2008, Icahn filed suit against Realogy concerning a proposed debt restructuring. By April 2009, he engaged in a proxy battle at Amylin Pharmaceuticals targeting its sale to Eli Lilly.

In September 2009, Icahn proposed purchasing the remaining XO shares at $0.55 per share, later increasing the offer to $0.80; however, the bid expired without acceptance. He stepped down from Yahoo!'s board in October 2009 and reduced his holdings from 75 million to 12 million shares by early 2010.

In February 2010, through Icahn Enterprises LP, he acquired the Fontainebleau Las Vegas property for approximately $150 million. The next month, he participated with lenders in acquiring Tropicana Casino & Resort Atlantic City out of bankruptcy for $200 million.

In March 2011, Icahn made an unsuccessful attempt to take over Lionsgate Films. In May 2010, he announced the acquisition of an 8.54% stake in Lawson Software.

2010–2015

In May 2010, Icahn purchased a 6.9% interest in Mentor Graphics, which grew to 14% by July. Despite Mentor's implementation of a shareholder rights plan, Icahn launched an unsuccessful $1.86 billion cash bid for the company in February 2011.

By January 2011, he proposed a $10.2 billion offer for Clorox and held a 9.08% stake by February.

As of October 2012, Icahn disclosed owning a 10% share in Netflix, Inc.. In November of that year, he sought to gain control over the board of Oshkosh Corporation.

Forbes ranked Icahn among the top 40 highest-earning hedge fund managers as of February 2013.

By April 2013, his stake in Nuance Communications stood at 9.2%. In August that year, Icahn filed suit against Dell aiming to block CEO Michael Dell’s $24.4 billion buyout plan while signaling his own takeover intentions. By October, he held approximately 4.7 million shares of Apple Inc. and acquired about 61 million shares in Talisman Energy, boosting its market value. That same month, he sold half of his Netflix holdings for proceeds exceeding $800 million.

In November 2013, Icahn took a 12.5% position in Hologic, a company specializing in medical devices and diagnostics.

January 2014 saw him invest an additional $500 million into Apple while pressuring eBay to separate PayPal, resolving their proxy conflict by April.

Icahn reinvested in Talisman Energy during October 2014; however, after the stock declined by 71%, he exited his position two months later.

Since 2015

On May 15, 2015, Icahn committed $100 million in funding to Lyft. Later that year, in November, he engaged CBRE Group to seek buyers for the incomplete Fontainebleau Las Vegas project and exchanged his eBay shares for stock in PayPal. He also revealed ownership of a 7.13% stake in Xerox. By December 2015, Icahn made an offer to purchase Pep Boys and boosted his holdings in Cheniere Energy to 13.8%, becoming its largest investor.

In August 2017, the unfinished Fontainebleau Resort Las Vegas was sold by Icahn for $600 million—more than quadruple the price he initially paid. Earlier, in January 2016, he reported a 4.66% ownership in Gannett Company while maintaining positions in Cheniere Energy and Freeport-McMoRan, both of which experienced declines in market value. Concerned about Apple's business ties with China, he divested from Apple shares in April 2016.

By August 2016, Icahn had increased his investment in Herbalife Nutrition to a 21% stake. In October of the same year, he shuttered the Trump Taj Mahal Casino located in Atlantic City after enduring years of financial losses and labor disputes, resulting in approximately 3,000 layoffs. The following month, November 2016, he expanded his investment in The Hertz Corporation after its stock price fell sharply.

In 2017, Icahn acquired a 9.7% position in Conduent, exited his holdings in both Allergan and Nuance Communications, and raised his stakes in Navistar International as well as Herbalife Nutrition.

By May 2020, Icahn liquidated his entire 39% ownership of Hertz Global at a price of 72 cents per share, realizing a loss close to $2 billion.

In February 2022, Icahn put forward two nominees for election to McDonald's board to advocate for enhanced welfare standards for pigs raised by its suppliers. However, by May 2022 only about 1% of shareholders supported these candidates; McDonald's responded by noting ongoing efforts toward more humane practices since a commitment made in 2012 and dismissed Icahn’s proposals as unreasonable.

In May 2023, short-selling firm Hindenburg Research published a report asserting that Icahn Enterprises was overvalued due to large dividends being sustained by capital from new investors. The analysis also pointed out loans secured against Icahn’s assets that might be called if share prices declined. Following this disclosure, shares of Icahn Enterprises fell by approximately 20%.

Public policy and economic views

Icahn publicly supported Donald Trump during the 2016 United States presidential election and pledged $150 million via a super PAC aimed at advocating corporate tax reform with an emphasis on addressing tax inversion practices—where corporations relocate headquarters overseas to lower their tax burden.

Although Trump initially indicated plans to nominate Icahn as United States Secretary of the Treasury, the position ultimately went to Steven Mnuchin.

On December 21, 2016, Icahn was appointed as a special advisor to President Trump focusing on regulatory reform. He served personally without designated responsibilities which allowed him to maintain his business interests. He resigned from this post on August 18, 2017, stating he wished not to interfere with regulatory authorities.

In February 2018, Icahn sold shares in a company sensitive to steel tariffs days before the Trump administration implemented a 25% tariff on imported steel, thereby avoiding an estimated $6 million loss.

During Scott Pruitt’s confirmation hearings for EPA Administrator, Icahn questioned him regarding the Renewable Fuel Standard. Additionally, he lobbied President Trump and Gary Cohn directly to modify ethanol regulations favoring CVR Energy—82% owned by Icahn—resulting in an annual benefit estimated at $205.9 million. After the election, CVR Energy’s stock price doubled, increasing its market value by $455 million. The Sugar Land refinery in Texas owned by CVR Energy also gained advantages from Trump’s expansion of tax breaks for master limited partnerships.

Personal life

In 1978, Icahn encountered Liba Trejbal, a ballerina originally from former Czechoslovakia. They wed in 1979 following her pregnancy and the signing of a prenuptial agreement. Liba contested the prenup when she filed for divorce in 1993, with the separation finalized six years later in 1999. The couple has two children: Brett Icahn and Michelle Celia Icahn Nevin. Rick Schnall is his nephew.

Later in 1999, Icahn remarried, tying the knot with Gail Golden, his longtime assistant and ex-broker, who brought two children from a previous marriage.

Philanthropy

Multiple institutions carry Icahn’s name, such as Icahn Stadium located on Randall's Island in New York City, along with the Carl C. Icahn Center for Science and the Icahn Scholar Program at Choate Rosemary Hall, which awards full scholarships to ten students annually.

Icahn has been a significant benefactor to his alma mater, Princeton University, financing the Carl C. Icahn Laboratory at the Institute for Integrated Genomics. His generosity extends to Mount Sinai Hospital, where he serves as a trustee. In his honor, the hospital named the Icahn Medical Institute after him and, in 2013, rebranded its medical school as the Icahn School of Medicine at Mount Sinai. Additionally, the genomics institute there was renamed the Icahn Genomics Institute.

Through his foundation, the Children's Rescue Fund, Icahn established Icahn House in The Bronx, a 65-unit residence designed for homeless families, and manages two more shelters for homeless individuals within New York City.

In 2010, Icahn became a member of the Giving Pledge, committing to allocate more than half of his wealth to philanthropic causes. As an activist investor, he has partnered with the Humane Society of the United States to encourage McDonald's to cease sourcing pork from farms using gestation crates.

In the media

The character of Gordon Gekko, portrayed by Michael Douglas in Wall Street (1987), was inspired by Carl Icahn according to Oliver Stone. A speech given by Icahn at a shareholder meeting served as the basis for Gekko’s iconic "greed is good" declaration.

Icahn is also featured in the 2022 Emmy-nominated documentary Icahn: The Restless Billionaire on HBO, directed by Bruce David Klein and produced by Atlas Media Corp.

Awards and honors

Among Icahn’s distinguished accolades are:

Golden Plate Award from the American Academy of Achievement (1984)
Founders Award and Man of the Year from the Starlight Foundation in 1990
Guardian Angel Man of the Year (2001)
Recognition in 2004 by the Center for Educational Innovation and Public Education Association for his contributions to charter schools
The 2006 Effecting Change Award from 100 Women in Hedge Funds for his impact on education

Thoroughbred horse racing

Icahn launched Foxfield Thoroughbreds, a horse breeding enterprise, in 1985. That same year, he invested $4 million acquiring Larida and set a record with a $7 million purchase of Miss Oceana, a mare pregnant by champion sire Northern Dancer.

His horse Meadow Star earned victory at the 1990 Breeders' Cup Juvenile Fillies and was honored as American Champion Two-Year-Old Filly.

By 1992, Foxfield transitioned away from racing toward commercial breeding operations, producing over 140 horses that competed in graded stakes races. In 2004, Icahn closed Foxfield and sold all mares and weanlings during the November auction at Keeneland Sales.

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