Blockbuster - #3

Founded by David Cook in 1985 as Blockbuster Video in Dallas, Texas, the retailer initially specialized in video rentals.

In 1987 the acquisition of most of the stores took place by Wayne Huizenga, who put the company into rapid expansion mode.

Viacom acquired the retailer in 1994 for $8.4B. In the mid-2000s, the company partnered with Enron (yes…that Enron) in an attempt to create a video-on-demand service. The agreement was supposed to last for 20 years; however, Enron terminated the deal in March 2001 over fears that Blockbuster would not be able to provide sufficient films for the service. (Wikipedia)

In early 2000, Netflix founders Reed Hastings and Marc Randolph offered to sell the company to Blockbuster for $50 million. Blockbuster turned them down (most have heard this story and it is still one of the biggest blunders in retail/business). Arrogance and lack of vision is a sure sign of death. The best time to pivot is when you are on top as there is nowhere else to go but down.

In 2004, Blockbuster (then at its peak with over 9,000 stores) spun off from Viacom. Failed acquisitions (Hollywood Video for one), proxy fights and poor management decisions led to bankruptcy in 2010,

The remaining stores were purchased by Dish Network and eventually all company stores were closed by 2014. By 2019 only one store remained open in Bend, Oregon. If I am not mistaken, this former franchised location is now an AirBnb.

Personally, I remember movie nights, late fees, movie theater-esq candy and microwave popcorn. Fun times…now its Netflix and chill!