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Percy

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Netflix co-founder Marc Randolph revealed they once offered to sell Netflix to Blockbuster for just $50 million after the company was on track to lose $50 million in a single year. Blockbuster’s board laughed them out of the room. “We tried going to Blockbuster. We tried reaching out to them for months” “We were doing $5 Million a year, they were doing $6 Billion a year. We had 150 employees, they had 60,000 and we see like an ant to an elephant” “It took months and finally we got the call and we were at a corporate retreat and all I had with me was shorts, T-shirt and thong sandals and that’s when Blockbuster called” “They go ‘we’d like to see you tomorrow in Dallas’ and I remember turning to Reed and going ‘there’s no way’” “And so we did the prudent thing you do when you’re $50 Million in a hole and we took a corporate jet and we fly to Dallas and go up to the 28th floor of this massive sky scrapper into this conference room” “In come the Blockbuster guys and we make our pitch ‘you run the stores, we run the online business. We will build a blended model’ and it was going good” “And they asked the big question.. How much and we had rehearsed on the plane” “We were $50 Million in the hole so we go $50 Million and then there’s this silence in the room and we’re looking at them Blockbuster executives trying to piece together their emotions” “And it dawned on us they were trying to suppress laughter”

Percy

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