Billionaire investor Carl Icahn has seized on Netflix's recent troubles to build a 10 percent stake in the Internet video service.

Wednesday's disclosure about Icahn's stake in Netflix Inc. caused the company's stock price to surge by 16 percent in late afternoon trading.

Icahn's filing with regulators didn't specify why he decided to buy 5.5 million Netflix shares.

But Icahn typically wields his stakes in companies to pressure changes in management and the board of directors. He also frequently pushes for companies to consider selling themselves or to pursue other dramatic changes to boost stock prices.

Netflix declined to comment Wednesday.

Netflix's stock has been sagging since the company raised its U.S. prices by as much as 60 percent nearly 16 months ago. The company's earnings have plunged this year.