business news in context, analysis with attitude

by Kevin Coupe

Variety has a great piece about something that I either did not know or did not remember - that a decade ago, Blockbuster had the opportunity to buy Netflix, but its then-CEO, John Antioco, turned the deal down.

At the time, Netflix could have been bought by Blockbuster for $50 million. Today, Netflix has a market cap of $19.7 billion … and Blockbuster is an obsolete brand being shut down by its owner, Dish Network.

And the irony is that at the time, Netflix CEO Reed Hastings was looking to be acquired, thinking that a combination of the two companies would be idea - that Netflix could run Blockbuster's mail order and online business, and Blockbuster could have Netflix videos in-store.

The story is about how Blockbuster didn't see the opportunity, wasn't unable to see where the future was going, and missed the chance to be a transformational company.

It illustrates, in the words of one observer, the difference between management and vision.

You can read the story here.

It is an Eye-Opener.
KC's View: