Carl Icahn Net Worth Has Declined 55% Since Hindenburg Report

Renowned billionaire investor Carl Icahn faced another significant blow to his net worth on Friday.

Icahn’s net worth declined by a staggering $2.7 billion after the company cut its dividend payment, confirming suspicions brought on by Hindenburg Research.

As a result, Icahn’s net worth has reached its lowest point in over 11 years.

According to the Bloomberg Billionaires Index, Icahn’s net worth sits at $8.4 billion, good for No. 263 on Forbes’ real-time billionaires list. Since the original Hindenburg short report in May, Icahn has lost more than half of his wealth with his net worth declining by 55 percent.

Hindenburg Research Still Short Despite Decline

One of the primary reasons behind this dramatic decrease can be traced back to Hindenburg Research, a notorious short-seller. In May 2023, the firm accused Icahn Enterprises of engaging in “ponzi-like” behavior to pay out its dividends. Hindenburg’s claims sent shockwaves through the market, and Icahn’s net worth experienced a massive 35% decline, plummeting from $18.3 billion to $12 billion in a single day.

The impact of Hindenburg’s accusations was so severe that it caught the attention of the Justice Department, prompting an inquiry into the matter. Icahn, in response, defended his firm and accused the short-seller of causing harm and damage.

Despite the decline, Hindenburg Research reiterated their short position with a tweet on Friday.

On May 2nd, we predicted that “Icahn Enterprises will eventually cut or eliminate its dividend entirely, barring a miracle turnaround in investment performance.”

Today, $IEP reported further investment losses and slashed its dividend by 50%.

We remain short. https://t.co/uacxg1yEBG

— Hindenburg Research (@HindenburgRes) August 4, 2023

Icahn Enterprises Cuts Dividend Payment, Shares Drop By 25%

On Friday, the situation took a further toll on Icahn’s wealth when his firm, Icahn Enterprises, decided to cut its quarterly distribution in half.

As a result, the company’s shares tumbled again, this time by 25% on Friday morning. That translates to a staggering $1.7 billion drop in the 87-year-old billionaire’s net worth.

Icahn Enterprises’ stock has faced considerable volatility, falling from $32.68 to $24.50 in a short span of time. This represents a considerable decline of nearly 55% since the beginning of the year, raising concerns among investors and analysts about the company’s financial stability.

In an attempt to address the crisis and stabilize his business empire, Icahn recently published a letter to shareholders stating that Icahn Enterprises would refocus on corporate activism, a strategy that has contributed to his wealth accumulation over the years.

The reduction in Icahn Enterprises’ quarterly dividend marks the first time that the company has cut its dividend payment since 2011.

By cutting the dividend from $2 to $1, the firm aims to preserve cash and navigate through the current storm. However, it is also an indication of the severity of the challenges faced by the company

What’s Next For Carl Icahn Enterprises?

Carl Icahn has been a prominent figure in the financial world, known for his activism and investment strategies.

However, the recent controversy and financial setbacks have cast a shadow over his once-soaring reputation.

With the Justice Department investigation still underway and Hindenburg Research standing firm in their allegations, Icahn faces an uphill battle to restore his fortune and place among the world’s elite.

It remains to be seen how Icahn Enterprises will weather this storm and whether the firm can regain the investor trust it once enjoyed.

For now, the financial community is closely watching the developments as Icahn strives to navigate through these challenging times and rebuild his empire.