Top 10 Companies Started Out of Spite
#10: Virgin Atlantic
(1984) We’ve all been on the receiving end of an airline's bad decision. But Richard Branson took it to another level back in the early ‘80s. He was waiting in Puerto Rico for a flight to the British Virgin Islands to get to his piece of paradise, Necker Island, where a woman was apparently waiting for him. However, the American Airlines flight was suddenly canceled. Infuriated, Branson called Boeing and asked to rent a second-hand plane from them as he was thinking of starting his own airline. Stranded passengers then snapped up the $39 tickets he was offering. So, when associates approached Branson later with an offer to buy into what would later be Virgin Atlantic, he jumped at the chance.
#9: Tesla Electric Light & Manufacturing
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(1884) After years of working in France for the Continental Edison Company, Nikola Tesla arrived in the US to work at the Edison Machine Works. After meeting with Edison, Tesla got to work. But within six months, Tesla wasn’t paid the bonuses he was promised. In his autobiography, Tesla claims he was promised $50,000, around $1.5 million today, only for the manager of the company to claim it was a “practical joke.” Other stories claim it was Edison who stated this. Regardless, Tesla left. He went on to form the Tesla Electric Light & Manufacturing and patented many inventions and concepts. Later, Tesla even joined up with the Westinghouse Electric And Manufacturing Company, which rivaled Edison’s company for years.
#8: Lamborghini
(1963) Sometimes, all it takes is a moment of anger to spark a new idea in someone. After serving in World War II, Ferruccio Lamborghini succeeded in building a tractor empire in Italy. With all the extra cash in his pocket, he splashed out on a Ferrari. But the clutch was problematic, and Lamborghini had it fixed several times. Losing his patience, he went to the founder of the car company, Enzo Ferrari. Lamborghini told him about the problem and offered suggestions to improve it. Ferrari didn’t take the criticism well and basically told him to stick with tractors. So, Lamborghini went away and created his own car company in 1963, becoming a major rival of Ferrari.
#7: The Gap
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(1969) We’ve all been to a store to get clothes, then become annoyed when our size isn’t there. But property developer Donald Fisher didn’t just sulk, curse a few times, and move on like us. Back in the 60s, Fisher went to return a pair of Levi’s jeans that didn’t fit. He then realized there was a big gap in sizes in the shop’s stock. Not happy, Fisher and his wife Doris created The Gap in 1969. The store originally acted like Levi’s warehouse by stocking all designs and sizes and even had records to appeal to the youth. But today, it’s a fashion brand on top of being a general clothes store.
#6: Activision
(1979) When Atari was purchased by Warner Communications, the start-up games company became more corporate. So, in 1979, a memo was sent around the office that highlighted which games were selling well. However, as games at the time were headlined by one-person teams, it showed the value of each employee. Some people saw their games had generated 60% of $100 million cartridge sales in a year and were angered that they were only getting $20,000. Nicknamed “The Gang of Four,” David Crane, Alan Miller, Larry Kaplan, and Bob Whitehead approached management to get design credits and royalties. When they were turned down and insulted, the Gang walked away from Atari and created the video game publisher, Activision.
#5: Adidas & Puma
(1949) (1948) Sibling disagreements don’t usually cause a town to be split and rival companies to form. But that’s what happened with the Dassler brothers, Adolf and Rudolf, in Germany. After running the successful shoe company Gebrüder Dassler Schuhfabrik, or Geda, for decades, the two had a falling out in 1948, and the company was closed. One reason, among others, is that Rudolf accused Adolf of being responsible for his conscription during World War II, which he denied. Rudolf quickly created Puma, and Adolf made Adidas not long after. This caused the town of Herzogenaurach to choose sides since most citizens worked at either company. By 2009, the hatchet was buried between Adidas and Puma when their respective CEOs played in a friendly soccer match.
#4: Sony Interactive Entertainment
(1993) Imagine shunning someone who then turns around to become your biggest rival. Well, Nintendo learned this the hard way. Back in 1991, Sony announced they were working with the video game developers to create a new version of the Super NES that contained a CD drive, the Nintendo PlayStation. The two companies had been working on this console since 1988. But suddenly, the day after the announcement, Nintendo canceled the partnership and instead joined forces with Philips, sending shockwaves through the Japanese business community. Nintendo was seemingly concerned about Sony’s ambitions in the industry. Angered by the betrayal, Sony kept working. They created Sony Interactive Entertainment and formed the PlayStation, which was released in 1994 and changed the video game industry.
#3: Liverpool F.C.
(1892) In modern times, Everton has watched as their city soccer rivals, Liverpool, have won titles and competitions. But what makes it worse is the fact they were responsible for the team’s formation. Back in 1884, Everton was playing their matches at the stadium, Anfield, owned by John Houlding. However, Houlding kept putting the rent up. During a meeting, he proposed the club buy Anfield. But Everton wasn’t keen and proposed a long-term rent. Houlding agreed, but only if the rent was a lot higher. By 1892, the Everton directors walked away from Anfield and created a new base, Goodison Park. Houlding, now with an empty stadium, decided to form Liverpool F.C. Within nine years, Liverpool won the First Division title.
#2: Netflix
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(1997) Back in the day, Blockbuster was the reigning champ in the entertainment rental market. One famous tale is that Reed Hastings, one of Netflix’s co-founders, was inspired to create the streaming juggernaut after getting a $40 late fee from Blockbuster. But what really spurred the company to take the industry by storm was when they offered to sell Netflix to Blockbuster in 2000 for $50 million, only to get laughed out of the meeting. Similarly, if Napster hadn’t gone under and left a gap, Daniel Ek might never have co-founded Spotify. Unhappy with the alternatives in place, he created a service that better suited the needs of a huge audience.
#1: Disney
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(1923) Although the Disney company wasn’t formed out of a spiteful situation, it was a spiteful situation that led to its ultimate success. Walt Disney had created the character of Oswald the Lucky Rabbit and his company created the initial cartoons for Universal Pictures. When Disney requested more cash, the counteroffer he received was actually for less cash. To add insult to injury, the studio promptly hired most of Disney’s staff and let Disney know that they now owned the rights to Oswald. Enraged by this betrayal, Disney and his remaining animator, Ub Iwerks, developed Mortimer Mouse, who would later go by Mickey Mouse, and rule the animation industry in the States.
