Biggest Business Mistakes
This is the third part of Random Business Facts. It’s just a couple random but huge business mistakes.
Technology
Merger of America Online and Time Warner in 2000 looked like a good move but the dotcom bubble wiped out much of AOL’s value and in 2002 the company suffered biggest ever corporate loss of some $100 billion. Time Warner dropped the AOL prefix from its name in 2003.
Land
In 1803, US purchased from France the Louisiana Territory for about $15 million. In 1626, Lenape Indians sold Manhattan Island to Peter Minuit for goods valued to around $24. That is amazing but at least they got something. Thousands of other Indians received nothing for land later appropriated in America.
Music
Decca Records turned down the chance to sign the Beatles in 1962 saying “groups with guitars are on their way out.” Sam Phillips, owner of a small recording company, sold his exclusive contract with Elvis Presley to RCA records in 1955 for $35,000 and missed out on royalties on the sale of more than 1 billion records.
Metals
Hunt Brothers in the 1970s purchased 59 million ounces of silver, roughly a third of the world’s supply, pushing the price of silver from $3 an ounce to $50 an ounce and earning a paper profit of about $4 billion. But the high prices led to greater silver and mining investment and in 1980s silver prices fell by 80% in a matter of days. Hunt brothers declared bankruptcy and were convicted in 1988 of conspiring to manipulate the market. In 1886 Sors Hariezon sold his South African gold claim for $20 which over the next 100 years produced over 1,000 tonnes of gold per year equaling roughly 70% of the precious metal in the West.
Popularity: 9%
If you enjoyed this post, please consider to leave a comment.
Comments
No comments yet.
Leave a comment