Apparently, neither of these are true. These, along with fourteen other abbreviated company names, have interesting origins.
AT&T and 3M are pretty well known, but do you know what IKEA, JBL, and CVS stand for?
Brothers Henry and Richard Bloch founding the tax preparation firm in Kansas City in 1955. Their only problem was their last name. The brothers worried that people would mispronounce their surname as “blotch,” hardly a term you want associated with your tax return. They decided to sidestep this problem by spelling the company’s name “Block” instead, so that nobody would miss the solid hard “k” sound.