Distribution Pixar And Disney

Pixar was originally the graphics department of LUCAS Films, which was bought by Apple Co-founder Steve Jobs in 1986. Pixar was founded as a Graphics Group. At first Piaxr developed high end computer hard ware, their main product was the Pixar image Computer  for use in hospitals for producing 3d images of scans ect.

As the the company was still unsuccessful in the computer graphics market Pixar employee John Lasseter who had been creating many short animations to show off the capabilities of there computer premiered hus cretions at the SIGGRAPH, the computer graphics industry’s largest convention. Lasseter’s animation department began creating computer animations for other companies. Over the next coming years Pixar would loose more employees and  was still very much unsuccessful, until Walt Disney  Feature Animation proposed a deal to Pixar for $26  million it would produce three computer animated films, the first being Toy Story (1995).  Even after the income from these three products was received Pixar was still losing money and steve jobs considered selling the company. Disney confirmed that it would distribute Toy Story for the 1995 holiday season and Steve Jobs kept the company.

 

After the production of Toy Story 2 Pixar had a disagreement with Disney, Toy Story 2 was mad for the straight-to-video release making it not part of the original $26 million three animation deal, but it was upgraded to a theate release during production. Pixar Wanted this to be part of the three film agreement but it was refuses by Disney, For this film the Profits and productioon cost were spilt 50-50 but disney still owned the writes to the sequel and also collected a distribution fee. As Disney had the writes to a sequel and Pixar had the technologie to create the sequel they two companies started laying there platforms as a partnership.

 

Pixar then wanted to come up with an agreement with Disney that they only distribute the movies and that Pixar own the movies and collected 100% of the profits as they wanted to finance there own movies.  After these disagreements Disney decided to acquire Pixar for $7.4 billion, putting disney on the board of director for Pixar.

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