Hollywood Art: System of sunnys

April 4, 1990.

Pixar is currently plagued by an unprecedented financial crisis. As a division of Lucasfilm's animation studio, Pixar strives to develop better software and hardware every day to assist animators in creating superior animation designs.

Undoubtedly, Pixar is a hub of talent, with many incredible animation universities in the United States contributing to its success. However, in this era, computer animation is not highly regarded, and only a visionary madman would claim that the future of animation lies in 3D designs. Interestingly, even Disney, to avoid a potential animation disaster, fired John Lasseter, one of the biggest proponents of this method. His dismissal also stems from the inherent fear that Disney might lose everything it has achieved since its inception.

Pixar, which stands for "pixel creator," even sent its animation technology to medical companies in the past. Therefore, only a daredevil would consider buying a company that aims to create future models. Steve Jobs, in 1986, purchased Pixar for a mere $5 million, which was quite a bargain considering the prospects.

In 1988, Pixar split into two parts. One focused on the sales of computer hardware and software, while the other took charge of animation, once again involving hardware and software. They worked on animated commercials, juice brands, boxing bottles, and dancing gummy bears.

The CAPS system, an animation system that granted them incredible recognition, caught Disney's attention, leading them to explore new avenues. However, the technology and hardware division were sold to Viacom, a significant move for Pixar, which saw a promising future in 1988. Therefore, Billy could only take a risk; it's better to start from the bottom and bet without looking back, winning at any cost.

Through his remarkable success, Billy secured a bank loan that was good enough to dot the i's and cross the t's and go all out. He knows very well that John Lasseter is a genius and a master in computer-generated character creation.

-Mr. Carson, Mr. Steve Jobs is waiting for you in his boardroom. -

In that room, John Lasseter, Ed Catmull, and Steve Jobs were present. These big names would soon become famous and acclaimed. The versatile industry has its eyes on Pixar, but Billy desires to change this narrative. A company of artistic creation is built by creators, and when that fiery passion is extinguished in the creators, it's evident that things won't go well.

Now that he sees everything more clearly, there are several things he needs to focus on. Firstly, he has a little over $2 million invested in different companies' stocks, along with $4 million in savings from Capcom and Pixar's profits. He also has a very good mortgage credit with an annual interest rate of 4.5% on a $16 million loan. In other words, a crisis would lead to an obvious collapse of his company, but he is not afraid. He plans to invest in Disney, and that's what he's going to set out to do.

-The boardroom looked substantially more elegant than the one he has in San Jose.

-Ah, the investor. Let me tell you that this meeting only happened at the insistence of John and Ed Catmull. - Steve Jobs said from the central chair, his gaze strong, and his black hair still sitting on his head, exuding vigor.

-Take a seat. - Jobs said.

Both Billy and Anne took their seats. Thomas had a trial in San Jose and couldn't come, and even though he felt secure with Anne's company, it was always a bit daunting to be in front of these guys without his trusted lawyer.

-It's... a pleasure to be here. I'm Billy Carson, and you can call me the mastermind behind Lux Comics. - Billy said.

Steve Jobs' sharp gaze never left Billy for a second.

-Oh, a pleasure to meet you, young man. You were quite expressive in the fax you sent about how impressive 3D animations are and your desire to see that same work reflected in a series. We didn't expect someone so young, but I'm glad to have you here. - John Lasseter said.

-Also quite emphatic about your desire to buy the company... - Steve Jobs said.

Jobs was surprised. Age is something that people often underestimate. He, at his age, when he started his Apple company, was also underestimated.

-Wow, he's quite tough. Almost as tough as he appears in all the interviews, past, present, and future that he had the opportunity to see. - Billy thought.

-Well, I'm not very good at managing companies, but some people can do that for me. However, I'm good at drawing, and I know well that there are times when having a boss limits my artistic imagination. I want to buy the company because I feel it can help me open up that feeling of letting my ideas flow without any constraints. I believe that most of the people working at Pixar understand the importance of letting creativity flow and the love for creation. - Billy said.

>>That's why I want to buy the company, and well, it wouldn't hurt to learn how to do 3D digital animation from geniuses like them. - Billy said.

-You want to buy a company to teach you how to draw? You should go to an art course and invest in education at some school. - Steve Jobs said sarcastically.

John and Ed were surprised but remained silent. Steve is rude, but they were curious. Ever since the kid entered the studio, he has exuded an air of incredulity. What were they doing at 15... 14 years old? What will he say?

-Sure, why not... while I make an incredible film. - Billy said. - Listen, Mr. Jobs, I have confidence in my talent. I already know how to draw, but I don't know how to animate. But I can create great stories, and those stories go hand in hand with your company. That's my reason for wanting to buy it. What better way to learn than by applying it? University cannot give me what I want to achieve. -

>>Furthermore, I have done some research on you. You are one of the most successful entrepreneurs in America, with the creation of Apple and now with the NeXT computer. You might be one of the best entrepreneurs... but from what I see, you might not enjoy being a part of Pixar. - Billy said.

-Ha, you're talking big, kid. You're right about one thing: I am one of the best entrepreneurs in America. I am the one who has led every company I've been a part of to success... so you should know that without me, Pixar would have sunk a long time ago. - Jobs said. - I'm indispensable.

-That may be true, but that's not what I meant. I believe that while you are important to Pixar, there is a place that is even more important to you, and that is creating amazing computers. - Billy said.

Steve looked up...

-You're quite clever... more than many of my employees. Give me reasons to sell this company, and if you manage to say something good, I will contemplate it and agree with you. - Jobs said.

-Well, Mr. Jobs, I think you're wasting your time at Pixar. Do you know Bill Gates? - Billy asked.

-I know him... to the point. - Jobs said.

-Well, they have Microsoft, a hardware and software company. In 1989, they started innovating their software system and created Microsoft Word and Excel packages. I am 100% sure that they won't fall behind and will continue innovating their system. Gradually, they will gain market share with their eye-catching products. - Billy said.

-It's interesting that you're guaranteeing something that won't happen. - Steve Jobs said.

You know that the technology market now focuses on constant innovation. The tech field is booming, and everything done now will be reaped in the future. In Pixar, innovation is good, but what is needed the most is creating friendly stories.

-That's why dedicating yourself to Pixar is just a hobby for you. Art is not something quantifiable or perfect; it's a passion. In your field of business, in my opinion, and the fact that you always excel, it's about adapting to the market and improving what already exists. - Billy said.

-You're saying that Pixar won't innovate. You're mistaken. - Jobs said.

-They will continue to innovate, but ultimately, that's not as important. Look at Disney; they've been animating in 2D for 60 years and are still an important company. The reason behind that is in animation companies, it's all about creating fantastic stories that bring joy to people. - Billy said, taking a breath and pausing to observe. - But in technology, that's where you shine. Your talent for innovation and creating new technologies aligns with the market. What hinders you from creating another Apple is time and patience. -

-I have to sell because my business is in another company... You're wrong, but not entirely. Indeed, innovation is not as necessary or lucrative in this industry. That's why we will focus on making money through commercials, and we will earn a lot. - Jobs said.

-Mr. Jobs, I know you don't have a strong financial background, and commercials only provide enough time to stay afloat... You even have a debt of $1.5 million. - Billy said.

Steve's nose slightly flared in anger, and he looked at John and Ed.

-Where did you get that information from? - John asked.

-I want to know too! - Jobs demanded.

-Well, I hired an analyst, and the bank records and public tax rates from the IRRS came up, which I requested as a practice to acquire a company. - Billy said.

The members of the Board of Directors looked surprised as they leaned back in their chairs.

-Why are you investing if you know the bad numbers? - Jobs asked.

-Because I enjoy doing it. I want Pixar; I want to create astonishing stories that excite children, teenagers, and grandparents. A new era of animation. - Billy said.

Anne was completely amazed. Now she understands why her father has told her that her son is a business genius. He is convincing Steve Jobs to go through with the sale of the company.

-Oh, you have a good team behind you. - Jobs said. -But you still haven't convinced me to accept the deal. You've made a good point, but it's nothing I haven't thought about before.

-Well, the next point is all about investment. You sold the hardware division in 1988 for $13 million, and with that investment, you founded NeXT Computer. You used the other $7 million to sustain NeXT. Investing in Pixar is not your first choice, and the money you invested has already been recovered. Why not sell me the company? - Billy said.

-Your main intention is to continue making commercials, but your managers have different desires. Making a TV series is too costly considering the animation expenses, but making a movie is possible. My idea is to create a 3D film, the first 3D film in history, and release it in theaters. - Billy said.

-How much money are you willing to pay for Pixar? - Jobs asked.

-Seven million dollars. - Billy said.

-That's not possible; it's too little for this company. - Jobs said.

-Mr. Jobs, you already sold half of the company to Viacom. Even the price I'm offering is higher than the initial price of the company. - Billy said.

-Well, I will consider your proposal. - Jobs said as he left the room. He paused before leaving and said, "I will send you a counteroffer if you decide to accept it."

John Lasseter and Ed Catmull stayed behind.

-Is it true that you want to make a movie with Pixar? - Ed asked.

-It's true. I have some ideas, but I'm open to your suggestions as well. I believe we can create something magnificent. - Billy said. -What do you think about exchanging information on that? We can send ideas back and forth.

-That would be good, but it's better if we wait for the negotiations with Steve to conclude. - Ed Catmull said.

-With pleasure! - Billy said, standing up from his negotiation chair and shaking hands with the great men of Pixar.

*The first animated short was created in 1984 at Lucasfilm. Steve Jobs bought the company for $5 million, which was considered very little for its future value at the time. However, it was considered obsolete because the failure of the movie "Tron" left lasting memories in Hollywood. They even had financial problems that persisted until "Toy Story" due to the limited information and available resources at the time.

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pixar had financial losses until 1994 when they made a licensing agreement with Microsoft, even Steve Jobs did not see much of a future, but the media had high expectations for "Toy Story" which led him to wait, and schedule an IPO a week after the movie's release.

the studio initially caused panic at Disney, and vetoed any attempt at 3d animation. to the point of stifling it with unilateral contracts that brought no profit, the perspective changed in 2002 with the unprecedented successes. but beyond the animation, it's the charm and design of the films.