Enron Broadband Services

Enron Broadband was the most ambitious fraud within the larger Enron fraud. The unit claimed to revolutionize video streaming with a 'content delivery network' that barely functioned. At a 2000 analyst day, Enron streamed a movie that was actually being broadcast from a server in the next room. The division exemplified cargo cult business - building the appearance of technology leadership without the substance. When Enron announced a video-on-demand deal with Blockbuster, both stocks soared. The deal produced nothing. Enron Broadband's $35 billion phantom valuation evaporated entirely.