Blockbuster’s largest shareholder calls Blockbuster worst investment ever made — from FastCompany.com by Austin Carr
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After years as Blockbuster’s largest shareholder, Carl Icahn, who at one point amassed some 17 million shares of the now-bankrupt company, has called Blockbuster “the worst investment I ever made.”
In a candid piece written for the Harvard Business Review, Icahn opens up about the rental giant’s struggles and failures in an ever-changing industry.
“[Blockbuster] failed because of too much debt and changes in the industry. It had too many stores, Netflix created a better business model, and then Redbox kiosks and the whole digital phenomenon eliminated the need for consumers to go to a separate DVD store,” Icahn wrote. “Maybe the board did make a mistake in picking Jim Keyes as [John] Antioco’s successor—Keyes knows retailing and did an excellent job with the stores, but he isn’t a digital guy.”
From DSC:
I write about Blockbuster — and I emphasize the items above — because Blockbuster did not respond to the changes that were occurring around them.
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What about those of us in higher education?
How’s our response(s) coming along?
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5/2/11 addendum:
4/7/11 addendum: