Lasseter, who had served as the firm's creative officer since filmmaking facility in San Rafael, California, Catmull's its founding. Because of his influence on the firm, Lasseter group of aspiring animators made substantial progress in had been heralded in the news media as a latter-day Walt the art of computer animation. But the unit was not able to Disney. A self-described Peter Pan, Lasseter had long been generate any profits and Lucas was not willing to let it grow known for his jolly public persona and tendency to greet beyond using computer animation for special effects. anyone in his proximity with lengthy bear hugs. He took a In 1985 Catmull finally turned to Jobs, who had just leave in 2017 following complaints about unwanted work- been ousted from Apple. Jobs was reluctant to invest in a place hugging and then agreed to retire at the end of 2018. firm that wanted to make full-length feature films using Some women had also complained that under Lasseter. computer animation. But a year later, Jobs decided to buy Pixar had not offered much opportunity to women and Catmull's unit for just $10 million, which represented a minorities. third of Lucas's asking price. While the newly named Pixar Despite the loss of Lasseter, Pixar is confident that it will Animation Studios tried to push the boundaries of com- continue to thrive as part of the Walt Disney Company. It puter animation over the next five years, Jobs ended up hav- was acquired by Disney in 2006 for the hefty sum of ing to invest an additional $50 million-more than $7.4 billon. The deal had been finalized by the late Steve Jobs, 25 percent of his total wealth at the time. "There were times the Apple Computer chief executive who had also served as the that we all despaired, but fortunately not all at the same head of the computer animation firm. Disney CEO Bob Iger time," said Jobs.4 worked hard to acquire Pixar, whose track record has made it Still, Catmull's team did continue to make substantial one of the world's most successful animation companies. breakthroughs in the development of computer-generated Both Jobs and Iger had been aware, however, that they fulllength feature films (see Exhibit 2). In 1991. Disney gave must protect Pixar's creative culture while they also try to Pixar a three-film contract that started with Toy Story. When carry some of this over to Disney's animation efforts. In the movie was finally released in 1995, its success surprised fact, Jobs had been convinced that Pixar's links with Disney everyone in the film industry. Rather than the nice little film would be mutually beneficial for both firms. In his own Disney had expected, Toy Story became the sensation of 1995. words: "Disney is the only company with animation in their It rose to the rank of the highest grossing animated film for the DNA." Lasseter, who had been overseeing all story devel- year, earning $722 million in worldwide box office revenues. opment at Pixar had also denied any negative effects from Within days, Jobs had decided to take Pixar public. Disney's acquisition of his firm. He had insisted that, in When the shares, priced at $22, shot past $33, Jobs called fact, Pixar's films were increasingly being subjected to his best friend, Oracle CEO Lawrence J. Ellison, to tell him higher standards because of its string of successes. he had company in the billionaire's club. With Pixar's sud- Ed Catmull, president of Pixar reiterated his firm's com- den success, Jobs returned to strike a new deal with Disney. mitment to take whatever steps may be necessary in order Early in 1996, at a lunch with Walt Disney chief Michael D
