Carl Icahn: A Visionary in Finance and Philanthropy
Biography of Carl Icahn
Carl Celian Icahn, an American businessman born on February
16, 1936, is a prominent figure in finance and philanthropy. He's best known as
the founder and main shareholder of Icahn Enterprises, a big conglomerate
holding company located in Sunny Isles Beach, Florida. His success in the world
of finance has earned him a reputation as one of the most accomplished hedge
fund managers and investors on Wall Street. He's often credited with
popularizing the strategy of activist shareholder involvement, which involves
actively engaging with companies to influence their direction.
During the 1980s, Icahn gained notoriety as a
"corporate raider" for his involvement in the takeover and
restructuring of Trans World Airlines, where he made significant profits by
selling off its assets. As per Forbes, Icahn's wealth is estimated to be
between $6.7 billion. Since 2011, Icahn has chosen not to manage funds for
outside clients, focusing instead on managing his own investments
Early Life and Education
Carl Celian Icahn was born into an Ashkenazi Jewish family
in Brooklyn, New York. He grew up in the Far Rockaway neighborhood of Queens
and attended Far Rockaway High School. His father, Michael Icahn, was a cantor
and later worked as a substitute teacher, while his mother, Bella (née Schnall),
was also a schoolteacher.
After completing high school, Icahn pursued higher education
at Princeton University, where he graduated with a Bachelor of Arts degree in
philosophy in 1957. For his senior thesis, he explored "The Problem of
Formulating an Adequate Explication of the Empiricist Criterion of
Meaning." Following his undergraduate studies, he briefly enrolled in New
York University School of Medicine but left after two years to join the
military reserve force.
The Maverick Mogul: Carl Icahn's Journey in Finance
Between 1961 and 2005, Carl Icahn's career trajectory was
marked by bold moves in the world of finance. Starting as a stockbroker, he
swiftly climbed the ranks, managing options and investments for various firms.
In 1968, armed with personal and familial investments, he founded Icahn &
Co., diving into risk arbitrage and options trading. His first major success
came in 1978 when he gained control of Tappan, later selling it for a
considerable profit to Electrolux. This marked the beginning of his reputation
as a savvy investor and corporate raider.
One of Icahn's most significant endeavors came in 1985 when,
pooling funds from investors and banks, he acquired half of Trans World
Airlines (TWA), eventually taking complete control through a leveraged buyout.
Icahn's management of TWA, characterized by asset sales and debt accumulation,
stirred controversy but also yielded substantial profits. He orchestrated
various takeovers and investments over the years, including failed attempts
such as the $8 billion bid for U.S. Steel in 1986 and the 1990 offer for Pan
Am. However, successes like the sale of his Texaco stake for $2 billion in 1989
showcased his knack for lucrative deals.
Throughout the 1990s and early 2000s, Icahn remained active
in the market, engaging in ventures ranging from acquiring stakes in companies
like Western Company of North America and RJR Nabisco to taking control of
Marvel Comics. He also made headlines for his involvement in corporate
disputes, such as his opposition to Mylan's acquisition of King Pharmaceuticals
in 2004, where he wielded significant influence to sway shareholder decisions.
These endeavors solidified Icahn's reputation as a shrewd investor and
influential figure in the financial world.
A Decade of Bold Investments and Corporate Battles
From 2005 to 2010, Carl Icahn continued to make waves in the
business world with his strategic investments and takeover attempts. One
notable instance was his involvement with XO Communications in 2005, where he
aimed to acquire the wired part of the business. Despite facing obstacles from
minority shareholders, Icahn pressed on, demonstrating his determination to
expand his portfolio. In the gaming industry, he made significant moves by
acquiring stock in Take-Two Interactive and later securing a takeover offer for
Lear Corporation, showcasing his interest in diverse sectors.
Icahn's ventures extended into the biotech and technology
realms as well. He purchased stakes in companies like Telik and Motricity,
signaling his interest in cutting-edge research and mobile technology.
Additionally, his increased involvement in BEA Systems and Biogen underscored
his keen eye for potential growth opportunities in evolving markets. Despite
facing legal battles and challenges, such as his lawsuit against Motorola and
his proxy battle for Amylin, Icahn remained undeterred in his pursuit of influencing
corporate decisions and maximizing shareholder value.
Furthermore, Icahn's foray into the entertainment and
hospitality industries, evidenced by his involvement with companies like
Lionsgate Films and his acquisitions of casinos and resorts, highlighted his
diverse investment interests. His strategic moves, such as the acquisition of
Fontainebleau Las Vegas and Tropicana Casino & Resort Atlantic City,
demonstrated his willingness to capitalize on opportunities in sectors
undergoing transformation. Despite facing setbacks, including failed takeover
bids, Icahn's resilience and adaptability solidified his reputation as a
formidable force in the business world during this period.
Carl Icahn: A Visionary in Finance and Philanthropy
Bold Investments, Strategic Moves, and Policy Influence
From 2015 onwards, Carl Icahn continued his trailblazing
journey in the financial world, characterized by bold investments and
high-stakes maneuvers. In 2015, he ventured into the transportation sector with
a significant investment in Lyft, showcasing his willingness to explore
emerging industries. Additionally, he initiated strategic moves such as hiring
CBRE Group to market the Fontainebleau Las Vegas and exchanging his stake in
eBay for shares in PayPal, demonstrating his adaptability and foresight in
navigating evolving markets.
In subsequent years, Icahn's investment portfolio expanded
to include diverse sectors, from energy to media and technology. He made
headlines with his sizable stakes in companies like Netflix, Xerox, and Gannett
Company, underscoring his interest in companies with potential for growth and
transformation. Despite facing challenges such as the closure of Trump Taj
Mahal Casino and fluctuations in the value of his holdings, Icahn remained
undeterred, consistently seeking out new opportunities and adapting his
strategies to suit changing market dynamics.
Icahn's influence extended beyond the realm of finance into
public policy, particularly through his support for corporate tax reform and
regulatory initiatives. His role as a special advisor to President Donald Trump
on regulatory reform underscored his significant impact on national economic
policy discussions. However, controversies surrounding his potential conflicts
of interest and investment practices also garnered attention, highlighting the
complexities of his multifaceted career and the intersection of business and
politics in his endeavors.
Personal Life
In the summer of 1978, when Carl Icahn was 41, he met Liba
Trejbal, a 28-year-old ballerina originally from Czechoslovakia. Just eight
months later, Trejbal became pregnant, prompting Icahn to propose marriage
under the condition that she sign a prenuptial agreement. They tied the knot in
March 1979. However, their marriage faced challenges. In October 1993, Trejbal
filed for divorce and contested the validity of the prenuptial agreement,
alleging that she had signed it under duress due to her pregnancy. After a
prolonged legal battle, the divorce was finalized in July 1999.
From their union, Carl Icahn and Liba Trejbal had two
children: Brett Icahn and Michelle Celia Icahn Nevin. Additionally, Icahn's
nephew is Rick Schnall. In 1999, following his divorce from Trejbal, Carl Icahn
married his longtime assistant and former broker, Gail Golden. Golden had two
children from a previous marriage.
A Legacy of Philanthropy and Influence
Carl Icahn's influence extends beyond the financial world,
as evidenced by various institutions and initiatives bearing his name. Icahn
Stadium, located on Randall's Island in New York City, is a notable example,
named in recognition of his contributions. Similarly, the Carl C. Icahn Center
for Science and Icahn Scholar Program at Choate Rosemary Hall, a prestigious
prep school in Connecticut, reflects his philanthropic endeavors. Through this
program, 10 students annually receive comprehensive support, covering tuition,
room and board, books, and supplies throughout their four years of high school.
Icahn's alma mater, Princeton University, also benefited from his generosity. He funded the establishment of the Carl C. Icahn Laboratory at the Institute for Integrated Genomics, focusing on genomic research. Additionally, Mount Sinai Hospital in New York, where Icahn serves as a trustee, received significant contributions. In recognition, the hospital named a building the Icahn Medical Institute and renamed its medical school as the Icahn School of Medicine at Mount Sinai. The genomics institute within Mount Sinai was also renamed the Icahn Genomics Institute. As part of his philanthropic efforts, Icahn established the Children's Rescue Fund, which created Icahn House in The Bronx, providing housing for homeless families, particularly single pregnant women and single mothers with children. The fund also operates Icahn House East and Icahn House West, serving as homeless shelters in New York City.
In 2010, Icahn pledged to donate more than half of his fortune by joining the Giving Pledge initiative. Additionally, he has engaged in activism beyond finance, collaborating with the Humane Society of the United States to advocate for McDonald's to fulfill its commitment to eliminating pork sourced from gestation crates. Icahn's contributions to society have garnered recognition through various awards and honors. He received the Golden Plate Award from the American Academy of Achievement in 1984 and the Man of the Year Award from the Starlight Foundation in 1990. The Guardian Angel organization named him Man of the Year in 2001, and he was honored by the Center for Educational Innovation in 2004 for his work with charter schools. In 2006, he received the 100 Women in Hedge Funds Effecting Change Award for his significant contributions to improving education.
