Editing Pixar (section)

=== Independent company (1986–1999) ===
[[File:Luxo Jr in Pixar Fest Hong Kong 2021.jpg|thumb|A ''[[Luxo Jr. (character)|Luxo Jr.]]'' figure display in [[Hong Kong]] ]]

In 1986, the newly independent Pixar was headed by President [[Edwin Catmull]] and Executive Vice President [[Alvy Ray Smith]]. Lucas's search for investors led to an offer from [[Steve Jobs]], which Lucas initially found too low. He eventually accepted after determining it impossible to find other investors. At that point, Smith and Catmull had been declined by 35 venture capitalists and ten large corporations,<ref>{{cite web |author=Kieron Johnson |url=https://www.entrepreneur.com/article/294821 |title=Pixar's Co-Founders Heard 'No' 45 Times Before Steve Jobs Said 'Yes' |publisher=Entrepreneur.com |date=April 28, 2017 |access-date=April 11, 2018 |archive-date=October 23, 2020 |archive-url=https://web.archive.org/web/20201023232838/https://www.entrepreneur.com/article/294821 |url-status=live }}</ref> including a deal with [[General Motors]] which fell through three days before signing the contracts.<ref name="Early Days">{{Cite web|url=https://spectrum.ieee.org/the-real-story-of-pixar|title=The Real Story of Pixar}}</ref> Jobs, who had been edged out of [[Apple Inc.|Apple]] in 1985,<ref name="Pixar Founding Documents" /> was now founder and CEO of the new computer company [[NeXT]]. On February 3, 1986, he paid $5&nbsp;million of his own money to George Lucas for technology rights and invested $5&nbsp;million cash as capital into the company, joining the board of directors as chairman.<ref name="Pixar Founding Documents" />{{Sfn|Paik|2015|p=52}}

In 1985 while still at Lucasfilm, they had made a deal with the Japanese publisher [[Shogakukan]] to make a computer-animated movie called ''Monkey'', based on the [[Sun Wukong|Monkey King]]. The project continued sometime after they became a separate company in 1986, but it became clear that the technology was not sufficiently advanced. The computers were not powerful enough and the budget would be too high. As a result, they focused on the computer hardware business for years until a computer-animated feature became feasible according to [[Moore's law]].<ref>{{Cite news|url=https://www.wired.com/2013/04/how-pixar-used-moores-law-to-predict-the-future/|title=How Pixar Used Moore's Law to Predict the Future|last=Smith|first=Alvy Ray|date=April 17, 2013|magazine=Wired|access-date=February 13, 2019|issn=1059-1028|archive-date=June 26, 2019|archive-url=https://web.archive.org/web/20190626230514/https://www.wired.com/2013/04/how-pixar-used-moores-law-to-predict-the-future/|url-status=live}}</ref><ref>{{Cite web|url=http://www.pixartouchbook.com/blog/2008/11/22/pixars-film-that-never-was-monkey.html|title=Pixar's film that never was: "Monkey"|last=Price|first=David A.|date=November 22, 2008|website=The Pixar Touch|language=en|access-date=February 13, 2019|archive-date=February 14, 2019|archive-url=https://web.archive.org/web/20190214061543/http://www.pixartouchbook.com/blog/2008/11/22/pixars-film-that-never-was-monkey.html|url-status=live}}</ref>

At the time, [[Walt Disney Studios (division)|Walt Disney Studios]] made the decision to develop more efficient ways of producing animation. They reached out to Graphics Group at Lucasfilm and to [[Digital Productions]]. Because of the Graphics Group's deeper understanding of animation, and Smith's experience with paint programs at NYIT, it convinced Disney they were the right choice. In May 1986 Pixar signed a contract with Disney, who eventually bought and used the Pixar Image Computer and custom software written by Pixar as part of its [[Computer Animation Production System]] (CAPS) project, to migrate the laborious ink and paint part of the 2D animation process to a more automated method.<ref>[https://books.google.com/books?id=xFIEEAAAQBAJ&q=Roller+Coaster+Rabbit&pg=PA87 Disney Stories: Getting to Digital]</ref> The company's first feature film to be released using this new animation method was ''[[The Rescuers Down Under]]'' (1990).<ref>{{cite web |url=https://www.guinnessworldrecords.com/world-records/first-fully-digital-feature-film/ |title=First fully digital feature film |work=[[Guinness World Records]] |publisher=Guinness World Records Limited |access-date=October 30, 2021 |archive-date=September 23, 2023 |archive-url=https://web.archive.org/web/20230923142539/https://www.guinnessworldrecords.com/world-records/first-fully-digital-feature-film/ |url-status=live }}</ref><ref>{{cite news |last1=Taylor |first1=Drew |title='The Rescuers Down Under': The Untold Story of How the Sequel Changed Disney Forever |url=https://collider.com/disney-rescuers-down-under-history-explained/ |work=[[Collider (website)|Collider]] |date=December 16, 2020 |access-date=October 30, 2021 |archive-date=September 23, 2022 |archive-url=https://web.archive.org/web/20220923010018/https://collider.com/disney-rescuers-down-under-history-explained/ |url-status=live }}</ref>

In a bid to drive sales of the system and increase the company's capital, Jobs suggested releasing the product to the mainstream market. Pixar employee John Lasseter, who had long been working on not-for-profit short demonstration animations, such as ''[[Luxo Jr.]]'' (1986) to show off the device's capabilities, premiered his creations to great fanfare at [[SIGGRAPH]], the computer graphics industry's largest convention.<ref name="Ohio">{{cite web|access-date=April 22, 2008|url=http://excelsior.biosci.ohio-state.edu/~carlson/history/tree/pixar.html|archive-url=https://web.archive.org/web/20170703022605/http://excelsior.biosci.ohio-state.edu/~carlson/history/tree/pixar.html|url-status=dead|archive-date=July 3, 2017|title=Pixar Animation Studios |publisher=[[Ohio State University]] }}</ref>

However, the Image Computer had inadequate sales<ref name="Ohio" /> which threatened to end the company as financial losses grew. Jobs increased investment in exchange for an increased stake, reducing the proportion of management and employee ownership until eventually, his total investment of $50&nbsp;million gave him control of the entire company. In 1989, Lasseter's growing animation department which was originally composed of just four people (Lasseter, [[William Reeves (animator)|Bill Reeves]], [[Eben Fiske Ostby|Eben Ostby]], and [[Samuel J Leffler|Sam Leffler]]), was turned into a division that produced computer-animated commercials for outside companies.<ref name="PixarTimeline">{{cite web|url=http://www.pixar.com/companyinfo/faq/faq.htm|title=COMPANY FAQS|publisher=Pixar|url-status=bot: unknown|archive-url=https://web.archive.org/web/20060702123318/http://www.pixar.com/companyinfo/faq/faq.htm|archive-date=July 2, 2006}}</ref><ref>{{cite book|url=https://books.google.com/books?id=-UHNCgAAQBAJ&pg=PA58|title=To Infinity and Beyond!: The Story of Pixar Animation Studios|first=Karen|last=Paik|date=November 3, 2015|publisher=Chronicle Books|via=Google Books|isbn=978-1-4521-4765-9|page=58|access-date=August 18, 2017|archive-date=March 24, 2021|archive-url=https://web.archive.org/web/20210324060148/https://books.google.com/books?id=-UHNCgAAQBAJ&pg=PA58|url-status=live}}</ref><ref>{{cite web |url=https://www.usask.ca/greenandwhite/issues/2007/winter2007/features/cover_story.php |title=Toy Stories and Other Tales |publisher=[[University of Saskatchewan]] |access-date=August 18, 2017 |archive-date=August 7, 2017 |archive-url=https://web.archive.org/web/20170807194547/http://www.usask.ca/greenandwhite/issues/2007/winter2007/features/cover_story.php |url-status=live }}</ref> In April 1990, Pixar sold its hardware division, including all proprietary hardware technology and imaging software, to Vicom Systems, and transferred 18 of Pixar's approximately 100 employees. In the same year Pixar moved from [[San Rafael, California|San Rafael]] to [[Richmond, California]].<ref>{{cite web |url=http://www.fundinguniverse.com/company-histories/Pixar-Animation-Studios-Company-History.html |title=Pixar Animation Studios—Company History |publisher=Fundinguniverse.com |access-date=July 8, 2011 |archive-date=March 4, 2012 |archive-url=https://web.archive.org/web/20120304201614/http://www.fundinguniverse.com/company-histories/Pixar-Animation-Studios-company-History.html |url-status=live }}</ref> Pixar released some of its software tools on the open market for Macintosh and Windows systems. [[RenderMan (software)|RenderMan]] is one of the leading 3D packages of the early 1990s, and [[Typestry]] is a special-purpose 3D text renderer that competed with RayDream.{{citation needed|date=February 2022}}

During this period of time, Pixar continued its successful relationship with [[Walt Disney Feature Animation]], a studio whose corporate parent would ultimately become its most important partner. As 1991 began, however, the layoff of 30 employees in the company's computer hardware department—including the company's president, Chuck Kolstad,<ref>{{cite web|url=http://hem.passagen.se/des/hocg/hocg_1990.htm |title=History of Computer Graphics: 1990–99 |publisher=Hem.passagen.se |access-date=July 8, 2011|url-status=usurped |archive-url=https://web.archive.org/web/20050418100713/http://hem.passagen.se/des/hocg/hocg_1990.htm|archive-date=April 18, 2005}}</ref> reduced the total number of employees to just 42, approximately its original number.<ref>{{cite news |url=https://www.nytimes.com/1991/04/02/business/hard-times-for-innovator-in-graphics.html |title=Hard Times For Innovator in Graphics |work=The New York Times |date=April 2, 1991 |access-date=July 8, 2011 |first=Lawrence M. |last=Fisher |archive-date=November 15, 2018 |archive-url=https://web.archive.org/web/20181115235344/https://www.nytimes.com/1991/04/02/business/hard-times-for-innovator-in-graphics.html |url-status=live }}</ref> On March 6, 1991, Steve Jobs bought the company from its employees and became the full owner. He contemplated folding it into NeXT, but the NeXT's co-founders refused.<ref name="Early Days"/> A few months later Pixar made a historic $26&nbsp;million deal with Disney to produce three computer-animated feature films, the first of which was ''[[Toy Story]]'' (1995), the product of the technological limitations that challenged CGI.<ref>{{Cite web |url=https://www.newsweek.com/toy-story-4-animation-bts-behind-scene-1447615 |title=The Illusion and Emotion Behind 'Toy Story 4' – Newsweek |website=[[Newsweek]] |date=July 5, 2019 |access-date=July 20, 2019 |archive-date=July 19, 2019 |archive-url=https://web.archive.org/web/20190719204633/https://www.newsweek.com/toy-story-4-animation-bts-behind-scene-1447615 |url-status=live }}</ref> By then the software programmers working on RenderMan and IceMan, and Lasseter's animation department, which made television commercials (and four Luxo Jr. shorts for ''[[Sesame Street]]'' the same year), were all that remained of Pixar.<ref>{{cite book|url=https://books.google.com/books?id=EUx4qErdynIC&pg=PT68|page=68|title=Ten Steps Ahead: What Smart Business People Know That You Don't|first=Erik|last=Calonius|date=March 31, 2011|publisher=Headline|via=Google Books|isbn=978-0-7553-6236-3|access-date=August 18, 2017|archive-date=March 24, 2021|archive-url=https://web.archive.org/web/20210324060149/https://books.google.com/books?id=EUx4qErdynIC&pg=PT68|url-status=live}}</ref>

Despite the income from these projects, the company still continued to lose money and Steve Jobs, as chairman of the board and now owner, often considered selling it. As late as 1994, Jobs contemplated selling Pixar to other companies such as [[Hallmark Cards]], [[Microsoft]] co-founder [[Paul Allen]], and [[Oracle Corporation|Oracle]] CEO and co-founder [[Larry Ellison]].<ref>{{cite book|last1=Price|first1=David A.|title=The Pixar Touch: The making of a Company|date=2008|publisher=Alfred A. Knopf|location=New York|isbn=978-0-307-26575-3|page=[https://archive.org/details/isbn_9780307265753/page/137 137]|edition=1st|url-access=registration|url=https://archive.org/details/isbn_9780307265753/page/137}}</ref> After learning from New York critics that ''Toy Story'' would probably be a hit, and confirming that Disney would distribute it for the 1995 Christmas season, he decided to give Pixar another chance.<ref>{{Cite news | url=https://money.cnn.com/magazines/fortune/fortune_archive/1995/09/18/206099/index.htm | title=Steve Jobs' Amazing Movie Adventure Disney Is Betting on Computerdom's Ex-Boy Wonder to Deliver This Year's Animated Christmas Blockbuster. Can He Do for Hollywood What He Did for Silicon Valley? | work=[[CNNMoney]] | first=Brent | last=Schlender | date=September 18, 1995 | access-date=August 3, 2020 | archive-date=March 21, 2019 | archive-url=https://web.archive.org/web/20190321235606/https://money.cnn.com/magazines/fortune/fortune_archive/1995/09/18/206099/index.htm | url-status=live }}</ref><ref>{{Cite news | access-date=April 22, 2008 | url=http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/08/23/BAGDKEBPAB1.DTL | title=Pixar tells story behind 'Toy Story' | work=[[San Francisco Chronicle]] | first=C.W. | last=Nevius | date=August 23, 2005 | archive-date=March 15, 2012 | archive-url=https://web.archive.org/web/20120315223917/http://www.sfgate.com/cgi-bin/article.cgi?f=%2Fc%2Fa%2F2005%2F08%2F23%2FBAGDKEBPAB1.DTL | url-status=live }}</ref> Also for the first time, he took an active leadership role in the company and made himself CEO.<ref>[https://theswissbay.ch/pdf/Gentoomen%20Library/Computer%20History/Apple%20Confidential%202.0%20The%20Definitive%20History%20of%20the%20World%27s%20Most%20Colorful%20Company.pdf Apple Confidential 2.0 ("Jobs jumped in with both feet")]</ref> ''Toy Story'' grossed more than $373&nbsp;million worldwide<ref>[https://www.boxofficemojo.com/movies/?id=toystory.htm "Toy Story"] {{Webarchive|url=https://web.archive.org/web/20190812125040/https://www.boxofficemojo.com/movies/?id=toystory.htm |date=August 12, 2019 }}. Box Office Mojo. Retrieved June 10, 2010.</ref> and, when Pixar held its [[initial public offering]] on November 29, 1995, trading as "PIXR" on [[NASDAQ]], it exceeded [[Netscape]]'s as the biggest IPO of the year. In its first half-hour of trading, Pixar stock shot from $22 to $45, delaying trading because of unmatched buy orders. Shares climbed to {{US$|49|round=-1|about=yes}} and closed the day at $39.<ref><Steve Jobs by Walter Isaacson, page 291>
[https://web.archive.org/web/20060702123318/http://www.pixar.com/companyinfo/faq/faq.htm "Company FAQ's"]. Pixar. Retrieved March 29, 2015.</ref>

The company continued to make the television commercials during the production of ''Toy Story'', which came to an end on July 9, 1996, when Pixar announced they would shut down its television commercial unit, which counted 18 employees, to focus on longer projects and interactive entertainment.<ref>[https://www.nytimes.com/1996/07/09/business/the-media-business-pixar-plans-end-to-commercials.html THE MEDIA BUSINESS;Pixar Plans End To Commercials]</ref><ref>[https://www.sfgate.com/business/article/Toy-Story-Maker-Did-Well-In-2nd-Quarter-2973218.php `Toy Story' Maker Did Well In 2nd Quarter – SFGATE]</ref>

During the 1990s and 2000s, Pixar gradually developed the "Pixar Braintrust", the studio's primary creative development process, in which all of its directors, writers, and lead storyboard artists regularly examine each other's projects and give very candid "notes", the industry term for [[constructive criticism]].<ref name="Catmull">{{cite news|last1=Catmull|first1=Ed|title=Inside The Pixar Braintrust|url=http://www.fastcompany.com/3027135/lessons-learned/inside-the-pixar-braintrust|access-date=September 28, 2014|work=Fast Company|publisher=Mansueto Ventures, LLC|date=March 12, 2014|archive-date=February 3, 2017|archive-url=https://web.archive.org/web/20170203120258/https://www.fastcompany.com/3027135/lessons-learned/inside-the-pixar-braintrust|url-status=live}}</ref> The Braintrust operates under a philosophy of a "filmmaker-driven studio", in which creatives help each other move their films forward through a process somewhat like [[peer review]], as opposed to the traditional Hollywood approach of an "executive-driven studio" in which directors are [[Micromanagement|micromanaged]] through "mandatory notes" from development executives outranking the producers.<ref name="Wloszczyna">{{cite news|last=Wloszczyna|first=Susan|title='Wreck-It Ralph' is a Disney animation game-changer|url=https://www.usatoday.com/story/life/movies/2012/10/31/wreckitralph-disney-movie-animation/1667373/|access-date=April 5, 2014|newspaper=USA Today|date=October 31, 2012|archive-date=June 28, 2014|archive-url=https://web.archive.org/web/20140628001739/http://www.usatoday.com/story/life/movies/2012/10/31/wreckitralph-disney-movie-animation/1667373/|url-status=live}}</ref><ref>{{cite news|last=Pond|first=Steve|title=Why Disney Fired John Lasseter—And How He Came Back to Heal the Studio|url=https://www.thewrap.com/john-lasseter-disney-fired-frozen-healed-studio-oscarwrap-down-wire|access-date=April 5, 2014|newspaper=The Wrap|date=February 21, 2014|archive-date=April 7, 2014|archive-url=https://web.archive.org/web/20140407102422/http://www.thewrap.com/john-lasseter-disney-fired-frozen-healed-studio-oscarwrap-down-wire|url-status=live}}</ref> According to Catmull, it evolved out of the working relationship between Lasseter, [[Andrew Stanton]], [[Pete Docter]], [[Lee Unkrich]], and [[Joe Ranft]] on ''Toy Story''.<ref name="Catmull" />

As a result of the success of ''Toy Story'', Pixar built a new studio at the Emeryville campus which was designed by PWP Landscape Architecture and opened in November 2000.{{citation needed|date=February 2021}}