Pixar Animation Studios (Disney)

Pixar began as the computer graphics division of Lucasfilm, established in 1979 to develop computer-generated imagery for Star Wars sequels and other Lucasfilm projects. The division, led by Ed Catmull and Alvy Ray Smith, produced groundbreaking computer graphics but never became central to Lucas's filmmaking. By 1985, facing expensive divorce proceedings and the commercial disappointment of several films, Lucas decided to sell the division.

Steve Jobs purchased the Lucasfilm computer graphics division in 1986 for $5 million, plus a $5 million operating budget commitment, renaming it Pixar. Jobs had just been fired from Apple and was looking for new ventures. He later said he had not understood what he was buying — he thought he was acquiring a hardware company that made high-end graphics workstations. The animation capabilities were, in his view, a secondary feature. He was spectacularly wrong.

Pixar signed a co-production deal with Disney in 1991 to produce three computer-animated feature films. Disney had the distribution rights and owned the characters; Pixar provided the technology and creative talent. Toy Story, released in November 1995, was the world's first fully computer-animated feature film. It grossed $362 million worldwide, was nominated for three Academy Awards, and launched one of the most successful film franchises in cinema history. Jobs had invested $50 million in Pixar before its IPO; after Toy Story, Pixar's IPO valued the company at $1.5 billion.

Pixar's relationship with Disney deteriorated under Disney CEO Michael Eisner. Pixar produced Finding Nemo, Monsters, Inc., and The Incredibles — all massive hits — while Disney animated sequels to Pixar properties without Pixar's involvement. In January 2004, Jobs announced that Pixar would not renew its distribution deal with Disney, saying the relationship had broken down. The standoff ended when Eisner resigned and Bob Iger became Disney CEO — his first major act was acquiring Pixar outright.

Disney acquired Pixar in January 2006 for $7.4 billion in stock — one of the most successful acquisitions in entertainment history. Steve Jobs became Disney's largest individual shareholder. Ed Catmull and John Lasseter took over Disney Animation, eventually producing Frozen, Zootopia, and Moana. The $5 million that Jobs had paid for a computer hardware company with an animation department had become $7.4 billion in twenty years.