To Infinity and Beyond

Special acknowledgements to Walter Issacson the author of "Steve Jobs". The facts and events in the blog are based on the biography of Steve Jobs written by Walter Issacson. The book is highly recommended to know more about Steve Jobs. We are highly indebted to the author for the valuable information that he has published in the book, without which the blog would not have taken shape.

When I was 12, I watched Toy Story for the first time. Despite not understanding English, the movie's animations conveyed its message. Now, at 22, Toy Story remains a cherished part of my childhood. Somehow, I find myself watching the movie every six months.

Curiosity about the Pixar logo alongside Disney's led us to research Pixar. We discovered that Steve Jobs played a key role in managing Pixar and, in 2006, became Disney's largest shareholder, earning billions despite being ousted from Apple.

Our research revealed Jobs as both an innovator and a masterful dealmaker. We hope you enjoy the insights we've gathered about Pixar.

Just before his departure from Apple, Steve Jobs crossed paths with Ed Catmull, who led the computer division at George Lucas's film studio. This division specialized in hardware and software for creating digital images and was home to a talented group of animators, including John Lasseter, an executive with a deep passion for cartoons.

Ed Catmull, Steve Jobs and John Lasseter
(from left to right)

Initially, Pixar focused on creating short animated films to demonstrate its technology, with John Lasseter leading the animation team. Jobs, sharing Lasseter’s love for design and animation, quickly formed a strong bond with him.

In 1988, as Pixar faced financial struggles, Lasseter pitched an idea for a short film called "Tin Toy." The story, inspired by classic toys, followed a toy one-man band named Tinny and his comedic interactions with a baby. Despite the company's tight finances, Jobs personally funded the project, which went on to win an Oscar for Best Animated Short Film. This victory established Pixar's reputation in animation.

Disney executives were impressed by "Tin Toy" and saw potential in stories about toys with human-like emotions. While they attempted to recruit Lasseter, his loyalty to Pixar and Jobs prevailed. Instead of joining Disney, Lasseter remained committed to pioneering computer-generated animation at Pixar.

Recognizing Pixar’s talent, Disney proposed a collaboration to produce a feature film about toys. However, negotiations between Pixar and Disney were complex. Jobs, still wary from his experiences at Apple, demanded a fair deal that protected Pixar’s technology and granted the company shared rights to its films.

In 1991, a deal was struck: Disney would own the film and its characters, while Pixar would receive a share of ticket revenues and maintain some creative input. This partnership led to the creation of "Toy Story," a film that explored the inner lives of toys and their desire to fulfill their purpose—being played with by children.

Toy Story was released on November 22, 1995 and opened to block buster commercial and critical success. It recouped its cost the first weekend, with a domestic opening of $30 million, and went on to become the top-grossing film of the year beating Batman Forever and Apollo 13, with $192 million in receipts domestically and a total of $362 million worldwide. According to the review aggregator Rotten Tomatoes, 100% of the seventy-three critics surveyed gave it a positive review.

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The film's success prompted Jobs to renegotiate with Disney. He wanted Pixar to be more than just a contractor; he envisioned it as a true animation studio. Following a successful IPO that valued Pixar at over $1 billion, Jobs secured a new deal with Disney, splitting costs and profits equally.

Under this deal, Pixar produced a string of successful films, including "A Bug's Life," "Toy Story 2," and "Monsters, Inc." However, a leaked email from Disney executives, which underestimated the potential of "Finding Nemo," strained relations between the companies. When "Finding Nemo" shattered box office records, Jobs halted negotiations with Disney, leaving the future of their partnership uncertain.

The turning point came with Bob Iger's appointment as Disney CEO. Recognizing Pixar's value, Iger initiated discussions to acquire Pixar. The $7.4 billion deal transformed Jobs into Disney’s largest shareholder and positioned Pixar leaders John Lasseter and Ed Catmull at the helm of Disney Animation.

The acquisition allowed Pixar to maintain its creative independence while revitalizing Disney's animation division. Through this strategic move, Steve Jobs not only secured Pixar's future but also contributed to Disney's resurgence as a powerhouse in animation.

This remarkable journey led Jobs to hold 80% of his stock portfolio in Disney shares at the time of his passing in 2011. Pixar's legacy of animated classics, from "Toy Story" to "Up," continues to entertain audiences worldwide.

Now, dear readers, what do you think? Would we have seen such beloved animated movies if Steve Jobs hadn’t taken a chance on Pixar? Share your thoughts in the comments below!

Thank You,

Happy Reading