The Jobs-Pixar Connection
In 1986, while still involved in starting up NeXT Computers Inc, Steve Jobs set about to expand into another area which would have potentially far-reaching implications in the entertainment industry as well as his own career. He acquired the Graphics Group, which had previously been a part of Lucasfilm’s computer graphics division, for the sum of $10 million. Half of this amount was used as capital to start up the then fledgling company, which had since been renamed Pixar. Although originally operating out of Point Richmond in California, the company relocated to Emeryville and forged a partnership with the Disney Corporation. The arrangement was that Pixar would produce full-length computer-animated feature films and Disney would be responsible for partly financing these films and distributing them through its networks.
The first offering from this partnership was a huge worldwide success. Toy Story, which was released in 1995, went on to become one of the most popular computer-animated films and won the admiration of the public as well as critical acclaim the world over.
Under the leadership of John Lasseter, who was then the creative mind behind Pixar, the company would produce a steady stream of commercially successful films over the next ten-year period. Among these were A Bug's Life, Toy Story 2, Monsters, Inc., Finding Nemo, The Incredibles, and Cars. Finding Nemo, The Incredibles in particular were lanmdmark productions in the computer animated film industry winning the Academy Award for Best Animated Feature, which was introduced in 2001.
In 2003, with the end of Pixar’s contract with Disney nearing, Steve Jobs and then Disney CEO Michael Eisner proceeded with plans to negotiate a new deal between the two companies. The talks failed to produce any mutually favorable arrangement however and Jobs announced in 2004 that Pixar would be looking for a new distributor for its films upon the termination of its existing contract with Disney. The failure on the part of the two companies to come to terms has been attributed to a reputed enmity between the two executives.
The climate was changing over at Disney however and by October 2005, Bob Iger was at the helm replacing Eisner. One of Iger’s first actions in his official capacity was to mend the relationship between Pixar and Disney. Negotiations soon ensued which culminated in Disney purchasing the Pixar Company. Steve Jobs then became the single largest shareholder of Disney’s stocks and when the merger was finalized, he joined the Disney Board of Directors.