List of animation studios owned by The Walt Disney Company
Pixar () is an American computer animation film studio based in Emeryville, California. The studio is best known for its CGI-animated feature films created with PhotoRealistic RenderMan, its own implementation of the industry-standard RenderMan image-rendering application programming interface used to generate high-quality images. Pixar began in 1979 as the Graphics Group, part of the computer division of Lucasfilm before its spin-out as a corporation in 1986 with funding by Apple Inc. co-founder Steve Jobs, who became its majority shareholder. Pixar and Disney had a seven feature agreement that allowed Disney to distribute the films with Disney owing the character rights. With the success of "Toy Story 2" in 1999, then-Disney CEO Michael Eisner and Pixar CEO Steve Jobs began to disagree on how Pixar should be run and the terms of their continued relationship. Eisner claimed that Toy Story 2 would not count towards the "original" film count of the agreement. Jobs announced in January 2004 that Pixar would not renew their agreement with Disney and would seek out other distributors for releases starting in 2006. In 2004, Disney Circle 7 Animation was formed as a CG animation studio to create sequels to the Disney-owned Pixar properties. In Late January 2006, new Disney CEO Bob Iger and Jobs agreed to have Disney purchase Pixar which led to Disney closing Circle 7.
George Lucas
The animation studio Pixar was founded in 1979 as the Graphics Group, one third of the Computer Division of Lucasfilm. Pixar's early computer graphics research resulted in groundbreaking effects in films such as "" and "Young Sherlock Holmes", and the group was purchased in 1986 by Steve Jobs shortly after he left Apple Computer. Jobs paid Lucas US$5 million and put US$5 million as capital into the company. The sale reflected Lucas' desire to stop the cash flow losses from his 7-year research projects associated with new entertainment technology tools, as well as his company's new focus on creating entertainment products rather than tools. A contributing factor was cash-flow difficulties following Lucas' 1983 divorce concurrent with the sudden dropoff in revenues from "Star Wars" licenses following the release of "Return of the Jedi".