The Acquisition That Got Away

In this series, professionals reflect on their inevitable career mistakes. Follow the stories here and write your own (please include #BestMistake in your post).

Once I lost millions in a failed acquisition attempt. It was the best mistake I ever made.

It happened years ago when I got the idea that my company, Rakuten, should acquire Tokyo Broadcasting System.

This was a time when the traditional advertising supported structure of media was newly under fire. So many consumers were using technology to skip ads that broadcasters could no longer guarantee the “eyeballs” advertisers were paying for. Coming from an e-commerce company, I saw great synergies between Rakuten and TBS. I figured: if you combine Internet with TV, it is a home run for all involved.

The leadership of TBS did not share my vision, but I was so confident, I pursued the acquisition anyway. Rakuten acquired 20 percent of TBS. Then 50 percent. TBS leadership fought the idea – they did everything they could to block me, including activating their company’s “poison pill.”

Finally, I had to give up. I lost millions and I did not end up with the acquisition in the end. But while this was a mistake, it was one that taught me a great deal. I was not able to make this acquisition happen because there was no cultural fit between Rakuten and TBS. We did not see the future in the same way. Without that shared vision, there could never be a satisfying combination of our two companies, no matter how much synergy I saw, no matter how passionately I lobbied the other side to see my point of view.

I have always remembered my TBS mistake. Acquisitions are not just about money or synergy. They must also be a good fit.

Equipped with the lessons learned from TBS (and perhaps a dose of humility), from 2007 to early 2010 we successfully acquired 5 companies that were, in fact, good fits. Then I started our Englishnization project, which converted Rakuten's official corporate language to English and required all Rakuten employees to become proficient. This vastly expanded our potential for good fit acquisitions around the world and we have since gone on to acquire some of the world’s innovative and successful companies, including Viber, Ebates, Kobo, and OverDrive among many others. These companies are good fits for us because we speak the same language in more ways than one. Lesson learned.

Don't be afraid to make mistakes. There are always lessons to be learned. And these lessons are what will lead you to success.