The second coming of steve jobs

Steve Jobs' acquisition of Pixar from George Lucas in early 1986 for $10 million marked a pivotal moment in the history of computer-generated animation. Initially, Lucas sought $30 million for the division, but after failing to sell to General Motors and Philips, he renegotiated with Jobs. This division, consisting of around forty individuals, many of whom had been collaborating since the 1970s, shared a common vision of creating animated movies using computers instead of traditional hand-drawing techniques. Their expertise in computer animation, a field demanding significant processing power to simulate light reflections on detailed objects, promised the potential for creating breathtaking three-dimensional images. Despite the high costs associated with computing power at the time, the team was optimistic, relying on Moore's Law to predict a decrease in costs over time.

Before joining Lucasfilm in 1980, this group was based in New York, aspiring to produce the first fully digital movie. Their move to Lucasfilm allowed them to attract more talent, although Lucas initially showed little interest in their capabilities. It wasn't until their work on "Star Trek II: The Wrath of Khan" that Lucas recognized the potential of computer graphics, incorporating them into his subsequent movies. Disney also took notice in the mid-1980s, purchasing graphics computers from the Pixar team for simpler tasks, which increased the productivity of their animators.

The NeXT Cube, introduced by NeXT in October 1988, was met with great anticipation, largely due to Steve Jobs' involvement and a grand unveiling event in San Francisco. Despite the initial excitement, the product struggled in the market, with sales significantly lower than expected. The high retail price of $6,500, compared to $1,500 for a basic PC, and the company's strategy to target the academic sector, which had limited purchasing power, contributed to its poor performance. Additionally, NeXT's refusal to provide free units to research labs and academic centers meant that students and researchers became more familiar with competing products, influencing their future purchasing decisions.

By the end of 1989, the production of the NeXT Cube had to be scaled back significantly due to low demand, with the company manufacturing only a fraction of its capacity. Despite these challenges, NeXT continued to project an image of success, with Steve Jobs expanding the company's workforce and investing in luxurious office spaces. This facade, however, did not translate into improved sales, even after NeXT ended its academic market exclusivity.

The Pixar crisis seemed catastrophic to its executives, but it was actually a standard procedure for Disney to pause and rework storylines during animation production. This approach, though initially alarming to Pixar, was simply Disney's way of ensuring quality. By April 1994, Pixar had revised the Toy Story plot to Disney's satisfaction, resuming production under immense pressure to meet high expectations and tight deadlines. Toy Story's success was critical for Pixar, and the team worked tirelessly to achieve it.

Steve Jobs, the owner of Pixar, was informed about the movie's progress but did not involve himself in the minutiae. His interest peaked in January 1995 during a Disney press conference, where he realized the potential of the Pixar-Disney collaboration. This epiphany led Jobs to take a more active role in Pixar, appointing himself as president and CEO. Despite his efforts, Pixar's staff continued to follow director John Lasseter's lead, largely ignoring Jobs' suggestions and interventions.

In the early 1990s, Apple Computer was in dire straits. The stock had plummeted from $60 in 1992 to $17 by the end of 1996, sales had dropped from $11 billion to $7 billion, and market share had decreased from 12% to 4%. The company was losing money rapidly, with a $1 billion loss in one year. CEOs John Sculley and Michael Spindler had unsuccessfully attempted to sell Apple to major electronics companies. By 1996, under CEO Gil Amelio, Apple considered buying software from outside sources and looked into acquiring Be, a startup by former Apple executive Jean-Louis Gassee. However, before finalizing this deal, the suggestion to acquire NeXT Computer's software came up.

Discussions between the two companies led to Apple's decision to purchase NeXT for $430 million, announced on December 20, 1996, which allowed Steve Jobs to return to Apple. Jobs quickly began influencing the company's direction, undermining Amelio's leadership, especially after a 30% drop in 4th-quarter sales. Jobs's media allies criticized Amelio's leadership, and Jobs's friend Larry Ellison hinted at a takeover of Apple with Jobs as CEO. This prompted the board to replace Amelio after a $708 million loss in the first quarter of 1997.

With the release of Toy Story 2 in November 1999, Steve Jobs cemented his status among legendary filmmakers like George Lucas and Steven Spielberg. The movie grossed $80.8 million in its opening weekend, marking one of the biggest openings in history. Despite initial skepticism from Hollywood insiders after the first Toy Story, Jobs's success with Toy Story 2 forced them to acknowledge his significant influence in the industry. They recognized his leadership in box-office success, critical acclaim, creative artistry, and technological innovation.

During Pixar’s 1999 annual shareholder meeting, Jobs shared his vision for Pixar to emulate Disney's success. He highlighted the central role of feature animation in Disney's theme parks, consumer products, and Broadway musicals. This vision led to a surge in Pixar's market valuation, surpassing the $2 billion mark. In January 2000, Jobs accepted the CEO position at Apple Computer. As compensation, he received a Gulfstream V private jet and options on 10 million shares of Apple stock. This move was seen as a departure from his previous stance of refusing substantial pay as interim CEO.