Very few internet companies were born from the ashes of the dot-com die down and disaster. Overstock is a successful E commerce company based out of Cottonwood Heights, Utah, proved that innovative ideas were still possible despite what had surpassed. The company started out as D2-Discount Direct and sold excess inventory from different sources at a discounted price. The operations were being so badly managed that when the now CEO Patrick Byrne first stumbled himself in the role, he was dismayed.
D2 had been founded in 1997 and had earned about $500,000 in revenue by selling excess inventory online first few years. The performance wasn’t impressive but there was something hidden in the general concept. Byrne was instantly enamoured. D2 was struggling financially and by this point Byrne had enough money to buy 60% share for about $36.7 million and immediately went to work. It didn’t take Byrne long to become frustrated the way the company was being run. He had learned business from his father and had grown up receiving nuggets of advice from the legendary Warren Buffet.
Knowing that he had to step in, Byrne took over as CEO and renamed the company as Overstock.com. Within the first few months, he had turned the revenue from about $700,000 to $1 million.