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Carl Icahn, one of the most powerful players in Wall Street, is in trouble. His net worth has been in a freefall as his company’s woes mount following a short-seller report that came out a few months ago.
Carl Icahn’s net worth now stands at $6.82 billion, making him an incredibly wealthy man. According to Bloomberg, he is now the 354th richest person in the world. Forbes, on the other hand, puts his net worth at $6.1 billion.
Carl’s woes are as a result of the performance of his company, Icahn Enterprises (NASDAQ:IEP). The stock, which was trading at $19.5 on Thursday, has crashed by about 60% from the highest point this year. Its market cap now stands at over $8 billion and Icahn owns about 86% of the company.
While Icahn is a Wall Street legend, his recent performance has not been good. In a Tweet, Michael Dell, the founder of Dell, noted that Icahn Enterprise stock, together with dividends, has plunged by over 59% in the past decade. The S&P 500 index, on the other hand, has risen by over 155%.
The most recent results showed that Icahn Enterprise had a net loss of $6 million in the third quarter as its adjusted EBITDA came in a $272 million. The company’s investment funds had a negative return of 4.4% because of its bias in the energy sector.
Icahn Enterprises woes started after Hindenburg alleged that the company was highly overvalued and that its assets were highly inflated. As a result, IEP decided to slash its dividend from $2 to $1 and analysts believe that the company will be forced to slash it again.
At the same time, Icahn was forced to renegotiate loans backed by its stock. He holds loans worth over $2 billion to companies like Bank of America, Bank of Montreal, and Deutsche Bank.
Watch here: https://www.youtube.com/embed/EEVe9fdciVI?start=2&feature=oembedThe post Carl Icahn loses $16.6 billion as his net worth plunges to $6.8 billion appeared first on Invezz
