Hundreds of millions of dollars were spent on this project, but the company ended up realizing almost no return.
When the recession hit in 2000, Enron had significant exposure to the most volatile parts of the market.
In July 2000, Enron Broadband Services and Blockbuster entered a partnership to enter the burgeoning VOD market.
The VOD market was a sensible pick, but Enron started logging expected earnings based on the expected growth of the VOD market, which vastly inflated the numbers.
This can work well when trading securities, but it can be disastrous for actual businesses.
In Enron's case, the company would build an asset, such as a power plant, and immediately claim the projected profit on its books, even though the company had not made one dime from the asset.
Following the merger, Kenneth Lay, who had been the chief executive officer (CEO) of Houston Natural Gas, became Enron's CEO and chairman.
Lay quickly rebranded Enron into an energy trader and supplier.
This type of accounting enabled Enron to write off unprofitable activities without hurting its bottom line.
The story of Enron Corporation depicts a company that reached dramatic heights only to face a dizzying fall.
The fated company's collapse affected thousands of employees and shook Wall Street to its core.
Enron created Enron Online (EOL) in October 1999, an electronic trading website that focused on commodities.
Enron was the counterparty to every transaction on EOL; it was either the buyer or the seller.