end of enron
... The economy has just witnessed the rise and fall of what was one of the world’s leading energy companies, Enron. In October of 2001, Enron announced a 618 million dollar third quarter loss (Sherman, 2002). ... Enron led the nation in energy sales and was known as the company to model after. Founded in 1985 through the merger of Houston Natural Gas and InterNorth as an interstate pipeline company, Enron began to rise to the top of the economy. Enron was ranked the seventh largest company in the Unites States in terms of revenue (www. ... In 2000, Enron began trading natural gas commodities and electricity and started the process of deregulation. ... Critics say that “deregulation of the energy business created the environment for Enron to fall” (www. ... Falling was not something that the public would have ever expected a company like Enron to do. ... The collapse of Enron took the public by surprise, but there were several events happening on the inside that foreshadowed the demise of the company. A serious incident that should have raised a few eyebrows in the financial dealings of Enron was the failure of the partnership that was formed between Blockbuster and Enron. ... In December of 2000, Enron and Blockbuster signed a potential twenty-year deal to pursue the video on demand market (Bradbury, 2001). In March of 2001, Enron cut the deal short, dismissing its partner after less than a full year, saying it was “unhappy at both the quantity and the quality of movies from Blockbuster, but insists it will continue with the video on demand by forging relationships with other content providers” (Bradbury, 2001, p. ... To the people at Blockbuster, it does not seem reasonable that Enron backed out of the deal so early. Enron had the “resources that most dot-coms would die for” (Lewis, 2001, p. 28), proving that the public and Blockbuster thought of Enron has a powerhouse company, one that had an almost a never-ending supply of assets and cash. ... Even after the deal had fallen through, Enron guaranteed the publics that they would stay in the broadband market and would soon launch its own service by the end of the year 2001 (Boyd, 2001).