17 Times Companies Said “No” to an Idea That Made Someone Else a Fortune
Corporate history is littered with missed opportunities and shortsighted decisions that cost companies billions. These moments of rejection often stem from an inability to see potential, fear of disruption to existing business models, or simple lack of vision about how markets might evolve.
Here is a list of 17 times when companies passed on ideas that later generated enormous wealth for competitors or entrepreneurs who believed when others wouldn’t.
Google and Facebook
In 2006, Google had the opportunity to purchase Facebook for $1 billion when the social network had just 10 million users. Google executives couldn’t justify the price tag for what many considered just another social networking fad.
Facebook is now worth hundreds of billions of dollars and has become one of Google’s biggest competitors in the digital advertising market.
Blockbuster and Netflix
Perhaps the most famous corporate rejection story involves Blockbuster declining to purchase Netflix for $50 million in 2000. At the time, Netflix was a DVD-by-mail service and Blockbuster dominated the video rental landscape with physical stores.
Blockbuster filed for bankruptcy in 2010 while Netflix pioneered streaming media and transformed entertainment forever.
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Kodak and Digital Photography
In a twist of corporate irony, Kodak actually invented the first digital camera in 1975. The company shelved the technology, fearing it would cannibalize their lucrative film business.
This decision allowed competitors to develop digital photography while Kodak clung to their traditional business model. The photography giant ultimately filed for bankruptcy in 2012, undone by the very technology they created.
Yahoo and Google
In 2002, Yahoo had the chance to acquire Google for $1 million, later raising the offer to $3 billion as Google grew. Yahoo ultimately decided the price was too steep.
Google’s market value has since grown to over a trillion dollars, while Yahoo was eventually sold to Verizon for a fraction of what it could have become had it secured the search engine giant.
Excite and Google
Before approaching Yahoo, Google founders Larry Page and Sergey Brin offered to sell their search algorithm to Excite for just $750,000 in 1999. Excite’s CEO George Bell turned down the offer, reportedly balking at how efficiently Google’s search worked, believing it would send users away from the site too quickly.
This decision effectively cost Excite a trillion-dollar opportunity.
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Decca Records and The Beatles
In 1962, Decca Records auditioned an unknown band called The Beatles and rejected them with the infamous assessment that ‘guitar groups are on the way out.’ The band signed with EMI instead and went on to become the most successful musical act of all time.
Decca’s rejection is considered one of the worst business decisions in music history.
HP and Wozniak’s Computer
Steve Wozniak offered his personal computer design to Hewlett-Packard five times while working there, but the company consistently rejected it. They couldn’t envision why ordinary people would want computers in their homes.
Wozniak eventually left HP and co-founded Apple with Steve Jobs, creating one of the most valuable companies in the world.
Western Union and the Telephone
Western Union had the opportunity to purchase Alexander Graham Bell’s telephone patent for $100,000 in 1876. The company president reportedly called the telephone ‘a toy’ with no commercial possibilities.
Western Union later tried unsuccessfully to enter the telephone business after Bell’s invention revolutionized communication globally.
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Comcast and Netflix
Before approaching Blockbuster, Netflix co-founder Reed Hastings pitched his company to Comcast. The cable giant dismissed the idea of a mail-order DVD rental service as unrealistic.
Netflix later became the pioneer of streaming media, forcing traditional cable companies like Comcast to adapt to a changing media landscape they could have led.
Microsoft and iPhone
Microsoft CEO Steve Ballmer famously laughed at the iPhone in 2007, saying, ‘There’s no chance that the iPhone is going to get any significant market share.’ The rejection wasn’t about acquiring Apple, but rather dismissing the concept that would reshape mobile technology.
Microsoft later tried to catch up with its own mobile offerings but never matched Apple’s success.
Friendster and Facebook
Social network pioneer Friendster turned down a $30 million acquisition offer from Google in 2003, only to be eclipsed later by Facebook. Friendster had the opportunity to acquire Facebook in its early days but passed.
The once-promising network eventually faded into obscurity while Facebook grew into a global tech giant.
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Marvel and Spider-Man
In the 1980s, Marvel was offered the merchandising rights to Star Wars for $10,000 but declined. George Lucas made billions from Star Wars merchandise over the decades that followed.
Marvel later became a film powerhouse itself, but this early rejection represents a significant missed opportunity in entertainment history.
Ross Perot and Microsoft
In 1979, Ross Perot had the opportunity to buy Microsoft for between $6 million and $15 million. After meeting with a young Bill Gates, Perot decided the price was too high.
Microsoft’s market cap later peaked at over $2 trillion, making this one of the costliest rejections in business history.
Verizon and iPhone
Before approaching AT&T, Apple offered Verizon the exclusive carrier deal for the original iPhone. Verizon rejected Apple’s terms, including control over distribution, pricing, and marketing.
AT&T accepted the deal instead and gained millions of subscribers during its period of iPhone exclusivity, while Verizon had to wait years to offer the device.
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Sony and Marvel
In 1998, Sony had the opportunity to purchase the film rights to the entire Marvel universe for $25 million. Instead, they opted to buy only the Spider-Man rights for $10 million.
While the Spider-Man films have been highly profitable, Sony missed out on the Marvel Cinematic Universe, which has generated tens of billions in box office revenue.
NBC and The Cosby Show
When ‘The Cosby Show’ was initially pitched, NBC executives showed little enthusiasm, giving it a minimal order and budget. The show went on to become television’s biggest hit of the 1980s, generating over $1 billion in revenue and single-handedly reviving NBC from last place to first in network rankings.
Electronic Arts and Minecraft
Gaming giant Electronic Arts had the opportunity to acquire the distribution rights to Minecraft early in its development but passed on the indie game. Microsoft later purchased Minecraft creator Mojang for $2.5 billion, and the game has sold over 200 million copies, becoming one of the most successful video games of all time.
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The Ripple Effects of Rejection
These corporate missteps reveal more than just poor foresight. They demonstrate how established companies often struggle to recognize innovations that don’t fit neatly into existing business models or market assumptions.
The space between rejection and vindication contains valuable lessons about innovation, disruption, and the challenges of evaluating potential when it arrives in unexpected packages. For both companies and entrepreneurs, these stories serve as powerful reminders that today’s unconventional idea might be tomorrow’s billion-dollar industry standard.
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