"Netflix was a no brainer when we first went into it." Icahn said in a CNBC "Fast Money Halftime" interview. "You couldn't compete with Netflix because they were starting the year with like $2 billion flowing into them, and Reed Hastings did a great job in building it up."
"I think the competition is somewhat easier if you see the secular change going on where they're building service, where they can go over the top, and there's going to be cable competition," Icahn added.
Icahn also said he believes Apple may be in the same position Netflix was, or maybe even in a better one. "I just don't see how … you compete with Apple because of the great ecosystem they've built."
Icahn Enterprises owned approximately 1.4 million Netflix shares at the end of the first quarter, according to Reuters.
Netflix shares dipped shortly after Icahn tweeted the announcement, and were up slightly in midafternoon trading.