Carl Icahn is an American businessperson who is the founder of Icahn Enterprises. Icahn Enterprises is a company that runs many diversified businesses and acts as a holding company. Carl has a net worth of $16.7 billion in 2020. Forbes has listed him as the 16th wealthiest person in the world. He is the fifth-largest hedge fund manager in the world. He was an advisor to Trump in 2017 but resigned from the post due to conflict of interest.
Carl Icahn- Shareholder Of Hertz
Hertz is a car rental company that is based in Florida. Walter L. Jacobs was the founder of this company. It was the second-largest car rental company in America in terms of sales. Hertz operated in 150 countries. Its operations were spread across North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand. Carl Icahn was the biggest shareholder of the company and believed in the company for the potential it had.
Fall Of Hertz And Carl Icahn
Forbes ranked the parent company of Hertz 335 in 2018. The company was flying high in 2018 with assets worth $21.8 billion and more than 35000 employees working under them. The COVID 19 pandemic hit the business of Hertz very hard. People started to travel less, and there was a sudden downfall in the revenue of the company. The virus discouraged people from traveling, and Hertz took the brunt of it. Since Carl Icahn was the biggest shareholder, he lost a lot of money that was riding on Hertz. Hertz finally filed for bankruptcy on May 22, 2020.
Carl Icahn’s Reaction On Loss
The business of Hertz fell drastically, and Icahn’s increased to 39 percent. He sold his shares for almost $40 million and incurred a loss of around $2 billion. He finally reacted about the bankruptcy and said, “I have been an investor and supporter of Hertz (HTZ) since 2014. Unfortunately, because of Covid-19 which has caused an extremely rapid and substantial decrease in travel, Hertz has encountered major financial difficulties,” He made these statements to the Securities Exchange Commissions when he decided to let go of his shares. He supported the company’s decision to file for bankruptcy.