Disney Didn’t Believe in Pixar at First—Then Steve Jobs Became Disney’s Largest Shareholder
Long before Steve Jobs became one of the most influential figures in Hollywood, he took a gamble that few others were willing to make. In 1986, Jobs purchased the computer graphics division of Lucasfilm for $10 million, renaming it Pixar. At the time, computer animation was still in its infancy, and many in the film industry—including executives at The Walt Disney Company>—were unconvinced that audiences would ever embrace a feature-length movie created entirely with computers. Pixar struggled financially for years, and Jobs invested tens of millions of dollars of his own money to keep the company alive.
Everything changed in 1995 with the release of Toy Story, the world’s first fully computer-animated feature film. Produced through Pixar’s partnership with Disney, the movie became a global phenomenon, earning critical acclaim and hundreds of millions of dollars at the box office. More importantly, it proved that computer animation wasn’t just commercially viable—it represented the future of animated filmmaking. The success of Toy Story transformed Pixar into one of Hollywood’s most valuable studios and sparked a creative partnership that produced hit after hit, including Finding Nemo, The Incredibles, Monsters, Inc., and Cars.
By 2006, Disney recognized that Pixar had become indispensable to its animation business. The company acquired Pixar in an all-stock deal worth approximately $7.4 billion. Because Steve Jobs owned roughly 50% of Pixar, he received about 138 million Disney shares, instantly making him Disney’s largest individual shareholder and earning a seat on the company’s board of directors. It was one of the most remarkable reversals in corporate history—a businessman who had spent years keeping a struggling animation studio alive had become one of the most powerful individuals at the entertainment giant that had once doubted the technology. By 2006, Disney recognized that Pixar had become indispensable to its animation business. The company acquired Pixar in an all-stock deal worth approximately $7.4 billion.