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During the formative years of Netflix Inc. (NASDAQ:NFLX), co-founders Marc Randolph and Reed Hastings made a bold decision to decline an acquisition proposal from Jeff Bezos, the founder of Amazon Inc. (NASDAQ:AMZN).

What Happened: According to a recent interview, Hastings said that Bezos had shown interest in buying Netflix in 1998, as part of Amazon’s strategy to expand into the video market. "It never got to, like, a formal offer. It was sort of exploratory," he said. 

"We said no and then worked our a — off for 20 years," Hastings said.

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While no official offer was put forth, Bezos’ team suggested a price in the low eight figures, which Randolph estimated to be between $14 million and $16 million, according to his 2019 memoir, “That Will Never Work.”

"When someone uses ‘low eight figures,' that means barely eight-figures. That means probably something between $14 million and $16 million," Randolph wrote in the memoir.

Despite facing financial difficulties, the Netflix co-founders believed they were on the brink of a major breakthrough. They had successfully sourced nearly every DVD available, positioning Netflix as the top online source for DVDs. As a result, they turned down Bezos’ offer.

In a twist of fate, Randolph and Hastings found themselves in a similar predicament with Blockbuster in 2000, but this time they were the ones seeking a deal. However, Blockbuster’s CEO, John Antioco, did not take their proposal seriously.

Why It Matters: Today, Netflix has grown into a global video streaming and production giant with a market cap of $411.34 billion and over 300 million subscribers worldwide.

The decision to reject Bezos’ early acquisition offer has clearly paid off, allowing Netflix to carve out its own path in the industry and become a leader in the streaming market.

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Image: Shutterstock/Daniel Avram

This article Jeff Bezos Once Tried to Buy Netflix, Co-Founder Says: 'We Said No and Then Worked Our A-- Off for 20 Years' originally appeared on Benzinga.com