In business, as in card games, it’s hard to quit when you’re ahead.
Blockbuster founder David Cook, a computer programmer, started the movie rental outfit in 1985 after designing software that could track what was most popular.
Two years later he got out by selling Wayne Huizenga a controlling stake for $18 million. Huizenga proceeded to turn the 19-store chain into a blockbuster worth billions.
Sensing technology shifts ahead, he hired a team to help him come up with a new model. “We discussed it a lot and thought about buying a cable company,” he says. “But there were so many ways it could go, and none of us wanted to get into an area where we had no expertise.”
Stumped, Huizenga threw in his hand and turned Blockbuster, now with 3,000 locations, into somebody else’s problem. He sold it to Viacom for nearly $8 billion in 1994, three years before Netflix was born.
Blockbuster’s first two owners played their end games early. Today, of course, the market is resetting again.
— Adapted from “How Blockbuster Failed at Failing,” Stephen Gandel, Time.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/17256/blockbuster-owners-knew-when-to-fold-em "