{"id":11522,"date":"2020-08-04T13:34:00","date_gmt":"2020-08-04T17:34:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=11522"},"modified":"2020-08-13T15:40:23","modified_gmt":"2020-08-13T19:40:23","slug":"enron-broadband","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/enron-broadband\/","title":{"rendered":"Enron Broadband: Here’s Why it Failed"},"content":{"rendered":"\n

What was Enron Broadband? What did they do, and how did it affect the Enron collapse<\/a>?<\/p>\n\n\n\n

Enron Broadband was a branch of Enron that was meant to be a major profit source. Instead, Enron Broadband quickly became untenable. But that didn’t stop Enron from claiming that Enron Broadband made money.<\/p>\n\n\n\n\n\n\n\n

What Was Enron Broadband<\/strong><\/h2>\n\n\n\n

The bad practices were begun to hide losses and prop up stock price. As the fundamental core of Enron failed to yield actual revenue, Enron felt forced to expand its deception, putting off its day of reckoning to later.<\/p>\n\n\n\n

Enron\u2019s Two Big (Failed) Bets<\/strong><\/h3>\n\n\n\n

All the financial machinations around SPEs were meant as temporary measures while Enron bet big on its next two major businesses<\/strong>. Both of them, however, sustained massive losses.<\/p>\n\n\n\n

Enron Broadband<\/strong><\/h4>\n\n\n\n

In 1999, Internet stocks were overheated. Put \u201cbroadband\u201d in your company somewhere, and the stock price would rise without tying to fundamentals. This was the foundation of Enron Broadband. <\/p>\n\n\n\n