^{Source: CNBC}

In the late '90s, most startups would have jumped at the chance to be acquired by a tech giant—especially for an eight-figure deal. But Marc Randolph and Reed Hastings, co-founders of Netflix, weren’t most founders.

In 1998, just a year after Netflix launched, the duo received a surprising phone call: Jeff Bezos wanted a meeting. At the time, Amazon was just four years old and still finding its footing in the world of e-commerce. Yet Bezos, always the visionary, was already thinking about expanding beyond books and into video content.

So, Randolph and Hastings flew to Amazon’s Seattle headquarters. According to Hastings, who recently appeared on the “First Time Founders with Ed Elson” podcast, it was obvious that Bezos was exploring a potential acquisition of Netflix to give Amazon a foothold in the online video rental space.

The Offer on the Table: A Modest Eight-Figure Deal

The offer never became formal, but Randolph later revealed to CNBC that the number floated was “somewhere in the low eight figures.” That typically means somewhere between $14 million and $16 million—a hefty amount for a fledgling startup, but modest in hindsight.

At that point, Netflix was still primarily selling DVDs online, not renting them. Its model wasn’t yet profitable, and scalability was a huge challenge. Still, Netflix had done something no one else had: made virtually every DVD on the market easily accessible online. That early insight hinted at the disruptive potential ahead.

Randolph, reflecting in his 2019 memoir That Will Never Work, said the decision wasn’t easy. “We were doing business, but not making money. The future wasn’t clear. But we felt something big was coming.”

The Plane Ride That Changed History

As they flew back to California, Randolph and Hastings weighed the pros and cons. A cash-out could’ve been life-changing. But they both felt they were on the edge of something more meaningful.

By the time they landed, the decision was made: Netflix would remain independent. They politely turned Bezos down. “We said no and worked our a-- off for the next 20 years,” Hastings later said.

Deja Vu: Blockbuster’s Missed Opportunity

Fast forward to 2000, and Netflix was the one trying to sell. They approached Blockbuster with a $50 million offer to be acquired. In what’s now a legendary misstep, then-CEO John Antioco reportedly laughed them out of the room.

“We thought: let’s give them 50%, help them profit, and grow together,” Hastings explained. “But they were a big, serious corporation. We were a bunch of scrappy Silicon Valley kids.”

Blockbuster didn’t bite. And the rest, as they say, is history.

From Rejection to Revolution: Netflix Today

Marc Randolph stepped away from Netflix in 2003, but Hastings stayed, steering the company through its transition from DVDs to streaming—and then into content creation.

Today, Netflix is worth over $411 billion and serves more than 300 million subscribers across 190 countries. The company produces award-winning content, from Stranger Things to The Crown, and has fundamentally reshaped how the world consumes entertainment.

Meanwhile, Amazon would eventually enter the streaming game with Amazon Prime Video in 2006. Despite being late to the party, it has grown into a formidable competitor. As of 2024, Amazon Prime Video holds over 200 million subscribers globally.

Lessons from a $16 Million “No”

The story of how Netflix turned down an acquisition offer from Jeff Bezos is more than just Silicon Valley lore—it’s a lesson in vision, perseverance, and timing.

Would a $14–16 million exit have been easier? Absolutely. But by betting on themselves, Hastings and Randolph created a legacy that continues to shape the entertainment industry.

And maybe, just maybe, that polite “no thanks” on a Seattle tarmac is one of the boldest decisions in tech history.

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