While Netflix shares have been pummeled over the past year-and-a-half, hedge fund guru Carl Icahn is betting on them to rebound, perhaps due to Netflix’s attractiveness as a takeover target.

In a regulatory filing, Icahn announced that he has acquired nearly 10% of the firm. “Netflix may hold significant strategic value for a variety of significantly larger companies that are engaging in more direct competition with one another due to the evolution of the internet, mobile and traditional industry,” Icahn reported in the filing, according to The Wall Street Journal.

Icahn said in the filing that he thinks Netflix’s shares are undervalued, citing its “dominant market position” and “international growth prospects” as reasons for his bullishness.