E
Ecstatic Spontaneity (Guenther), 234
Eisner, Michael, 179
consideration for board, 110
relationship with Jobs, 177, 217–18
renegotiation, 181, 183–87, 193–94
steps down from Disney, 218
Electronics for Imaging, 3, 21–22
IPO, lessons of, 101
Robertson Stephens, lead investment bank, 126
Elegant Universe, The (Greene), 234
Ellis, Lisa, 203
Ellison, Larry, 157
Emeryville, 246–47
Engel, Tim, 56–57
entertainment business, understanding, 66, 73
Entertainment Industry Economics (Vogel), 73–74, 133, 159–60
Eshoff, Marty, 203
F
film distribution, business of, 174
film lab, 16–17
Finding Nemo, awards, 214–15
Fischer, Sam, 40–46, 75–76, 110, 184–85
Fitzimmons, Ken, 156
Fortune, 200
Frozen, 222
G
Garfield, Jay, 235
Geffen, David, 179
Golden Globe, Toy Story 2, 215
Goldman Sachs, 115–17
Grammy Award, A Bug’s Life, 215
Graziano, Joe, 112
Greene, Brian, 234
Guenther, Herbert, 234
Guggenheim, Ralph, 19
H
Hambrecht and Quist, second bank on Pixar IPO, 137
Hanks, Tom, 18
Hollywood opening, 150
Hannah, Rachel, 166, 203
home video, business of, 64–65, 70
Toy Story 2 direct to, 173
Huxley, Aldous, 235
I
If You Want to Write (Ueland), 235
Iger, Bob, 218–21
Incredibles, The, awards, 214–15
initial public offering (IPO)
explanation of, 99, 100–101
insider trading and, 103
history in spice trade in seventeenth century, 101–3
preparation for, prospectus, 138
Sonsini for advice, 106–8
two or three banks, 136–37
investment banks and bankers. See also Cowen and Company; Hambrecht and Quist; Robertson Stephens, investment bank
company value, assessment of, 114–15, 118, 138
definition, 114
role in IPO, 114
trading price decision, 144–46
J
Jennings, DJ, 203
Jobs, Steve, 3, 49, 137
Apple, relationship with, 3–4, 88, 108, 208–11
CEO, Pixar, 24, 210–11
commercial failures, 4, 11, 210
contact with, phone and face to face, 31–32, 50
Disney renegotiation and, 186
Disney’s largest stockholder, 221
Fortune story of Pixar, 200–202
interview and plan for Pixar, 5–6
office at Pixar, 57–58, 62
personal checks for Pixar shortfall, 10–11, 36
Pixar, retention of controlling stock, 88
Pixar IPO and, 5, 79, 100–101, 104, 127, 137
Pixar road show and, 147
“reality distortion field,” 6
relationship with Pixar, 27, 57–58, 210
Toy Story opening box excitement, 155
Jobs’s vision for Pixar
aspirations for Pixar, 5, 31, 47, 65–66
difficulty in succeeding, 74
hurdles for Pixar to succeed, 79
process of, 66
return to Apple and, 209
risk and raising capital for filmmaking, 77
“John Lasseter School of Animation Direction,” 165
Juskiewicz, Christina, 239
K
Kabloona (Poncins), 235
Katzenberg, Jeffrey, 49, 167, 168, 179
Kerwin, Pam, 19, 26–27, 62–63
RenderMan manager, 30–31
video games, possibility of revenue from, 79
Knick Knack, 38
Krantz, Matt, 214
Kübler-Ross, Elisabeth, 235
L
LA Times, 157
box office numbers, 158
Lasseter, John, 13, 17–18, 94, 164, 168–72
chief creative officer, 221
film credit question, 205
Hollywood opening, 150
Pixar’s brain trust, 164–65
leverage and negotiation, definitions of, 175
Levy, Hillary, 20, 39, 47, 50, 58, 59, 60, 63, 89, 105, 138, 151, 154, 208, 230, 237, 238, 240, 243, 247
education and career, 7
faith in Steve Jobs, 25
family ties and, 7
Juniper founding, 239–40
Levy, Jason, 7, 55, 59, 64, 149–52, 247
Levy, Jenna, 63, 151, 247
Levy, Lawrence
accident (automobile) and insight on Pixar, 242–43
accident (rollerblading) and change in attitude, 58–62
background, 5, 7
CFO of Pixar, 159
comparison to Marlin in Nemo, 223–24
at Electronics for Imaging, 22–23
executive vice president and CFO, Pixar, 24
family history, 228–29
interviews with Jobs and Pixar, 5, 20
joining Pixar’s board of directors, 232
Juniper founding, 239–40
personal relationship with Jobs, 63, 208, 211–13, 247–48
religion and philosophy, 229
sabbatical to study Eastern ideas, 231–32
Levy, Sarah, 7, 56, 64, 148, 149–52, 247
live-action film business, 68–70
Pixar, consideration of, 71–72
Lucas, George, 4, 9, 93
Lucasfilm
history of, 9
imaging computer, 4
Pixar, computer graphics division, 140
Luxo Jr., 13, 37–38
Best Animated Short Film nomination, 38
M
Magic Mountain, The (Mann), 229
Martin, Eff, 117, 118, 122
McArthur, Sarah, 166
McCaffrey, Mike, 131–32, 148, 156
Mickey Mouse, 67
Microsoft, 34–36
Middle Way, 235–36, 245
relationship to Pixar, 243–44, 246
Monsters, Inc., awards, 214–15
Moore, Gary, 184
Moore, Rob, 187–88, 191, 195, 197, 198
Morgan Stanley, 115–17
Moriarty, Pam, 239
Morrissette, Adele, 135–36
Murti, T.R.V., 235
N
Nagarjuna, 229
Nelson, Randy, 166
Netscape IPO, 104
Morgan Stanley and, 115, 117
trading price, 143–45
New York Times, 198–99, 217–18, 221
Newman, Randy, 18–19
NeXT Computer, 3–4
Apple purchase, 207
commercial failure, 11, 210
O
Ohlone Tribe, 82, 244
On Death and Dying (Kübler-Ross), 235
P
Parikh, Milan, 203
Perennial Philosophy, The (Huxley), 235
Phillips, Diane, 203
photoscience, computer images to film, 54–55
Pixar
company culture, 27–28, 83, 85
e-mail to the company, 232–33
employee feelings toward Jobs, 28, 202
location and physical facility, 6, 9, 246–47
“Production Babies,” 63, 151
story team, 164–65
Pixar, business plan
brand recognition, 98, 174
expansion and talent recruitment, 165–66
film release schedule, 97–98, 164, 165
increased share of profits, 96, 174
production costs to be paid by Pixar, 96–97
; Pixar, business side, 19–20. See also animated commercials group; RenderMan software
board of directors, 108–12, 220, 232
branding, 98, 174, 186, 188–91, 194, 198
carrying costs in, 77–78, 173–74
creative decisions and team, 166–71
decision-making process, 36
domestic box office for Toy Story, 95–96
employee stock options, 85–90
financial model, difficulty in projecting, 75–77
live-action film business consideration, 71–72
parallels to Disney Company, 67–68
shortfall and Jobs’s personal check, 10, 39
stock price, diversification or Pixar sale, 215–17, 219–21
understanding history of company, 48–49
Pixar, initial public offering (IPO)
company prospectus, 138–39
full financial disclosure, 103, 138–39
investment bank decision, 116–18, 122–24
Morgan Stanley and Goldman Sachs rejection, 125–26
PIXR NASDAQ stock symbol and initial trading, 156–58
plan, 100–101
road show, 131–32, 144, 147, 148
timing of, 104–5, 106–8
trading price decision, 142–46, 153–56
trading price proposed in company prospectus, 143
Pixar departments
animation department, 16, 29
lighting department, 52
photoscience department, 52
storyboard department, 16
Pixar-Disney contract renegotiation. See also Disney Company production agreement
beginnings of, 184
branding issue, 187–92, 197–98
breakthrough on impasse, 193–95
creative control, 197
definition of treatment, 195–96
derivative works, 196–97
Disney advantages in renegotiation, 176–78
Disney renegotiation timing, 174–76, 181, 183
Pixar advantages in renegotiation, 178–80
planning for positions, 181–83
profits, 197
risk terms, 195
Pixar stock certificate design, 145
Pixar University, 166
Point Richmond, 9, 246
Q
Quattrone, Frank, 117, 118, 120–22
R
Ranft, Joe, 164, 171
Red’s Dream, 38
Reeves, Bill, 19
technical leader, 52
Reher, Kevin, 204
renderfarm, 17
RenderMan software, 10
Academy Award, 30
business of, 30–33
patents, Microsoft and Silicon Graphics infringement, 33–36
sales team, 93
visual effects in Jurassic Park, Terminator 2, 29–30
Richardson, Bryn, 203
Rinpoche, Segyu Choepel, 237–40
Juniper founding, 239–40
Sebastopol meditation center, 237
Rivera, Jonas, 203
Robertson, Sandy, 128
Robertson Stephens, investment bank, 126–31
Commitment Committee, 131, 158–59
Pixar decision, 158–59
road show satisfaction, 148–49
trading price decision, 153–56
Roth, Joe, 68–70, 170
joining Pixar’s board of directors, 70
S
San Francisco, geography, landscape, and traffic in, 8–9, 81
Sarafian, Katherine, 203
Schlender, Brent, 200–201
Schneider, Peter, 110, 167
Schumacher, Tom, 167
screening room, 13
Securities and Exchange Commission (SEC), 103
creation of, 103
prospectus filed, 146–47
role in reviewing legal documents of IPO, 138–39
short film, profit and growth potential, 38
Silicon Graphics, 34–36
Silicon Valley, 72, 82, 84–87, 99, 106, 170–71
Singson, Katherine, 203
Skywalker Ranch, 93
Smith, Alvy Ray, 9
Sonsini, Larry, 21, 105, 106–8, 112, 194, 217
Disney acquisition, opinion on, 218
joining Pixar’s board of directors, 112
Robertson Stephens, opinion on, 127
Spielberg, Steven, 179
Staff, Sarah, 63, 75, 95, 154, 203
Stanton, Andrew, 164, 171, 197
Steamboat Willie, 67
Steve Jobs and the NeXT Big Thing (Stross), 6
stock options, understanding, 87
Stross, Randall, 6
T
Taylor, Robert, 203
Tin Toy, 13
Best Animated Short Film Academy Award, 38
Toy Story. See also box office comparisons; Buzz Lightyear; Woody, character of
animating shadows, skin, background, 53
box office numbers, 154–55
clay models of characters, 121
Disney marketing for, 94–95, 149
early version, 14–16, 18
El Capitan opening, 148–51
final version, 151
Funhouse, 151–52
at Lucasfilm, 140
opening box office number, 140–42
post-production, 93–94
product licensing, 95
release date, 51, 79, 93, 125, 140, 147
revenue projections, 56–57
Toy Story 2
awards, 214–15
sequel and Disney contract, 173
U
Ueland, Brenda, 235
Unkrich, Lee, 165
V
video games, Toy Story, 173
Vogel, Hal, 73–74, 77, 89, 133, 134–36, 159–60
W
Walt Disney Company. See Disney Company
Walt Disney Studios, 68
Wholeness and the Implicate Order (Bohm), 234
Wilson, Sonsini, Goodrich & Rosati, 5, 106
Woody, character of, 14–15, 155
Disney influence, 45, 55–56
Writing Life, The (Dillard), 230
Z
Ziffren, Brittenham, Branca & Fischer, entertainment law firm, 40
About the Author
LAWRENCE LEVY is a former Silicon Valley attorney and business executive who was personally recruited by Steve Jobs in 1994 as CFO and member of the Office of the President of Pixar Animation Studios. Levy was responsible for Pixar’s business strategy and IPO and guided Pixar’s transformation from a money-losing graphics company into a multibillion-dollar entertainment studio. He later joined Pixar’s board of directors.
Levy left corporate life to study Eastern philosophy and meditation and their relevance to modern life. He now writes and teaches on this topic and cofounded Juniper Foundation (www.juniperpath.org) to pursue this work. Originally from London, Levy earned degrees from Indiana University and Harvard Law School. He lives with his wife, Hillary, in Palo Alto, California.
For more information please visit www.lawrencelevy.com
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Footnotes
1. Hal Vogel, Entertainment Industry Economics: A Guide for Financial Analysis (Cambridge University Press, 1986–2011), p. 71.
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2. Ibid., p. 117.
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3. One excellent source for the history of the Ohlone is Malcolm Margolin, The Ohlone Way: Indian Life in the San Francisco-Monterey Bay Area (Heyday Books, 1978).
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4. Box Office Mojo, http://www.boxofficemojo.com/genres/chart/?id=animation.htm. The Little Mermaid went over $100 million in a second release that occurred after 1995. This number also excludes Who Framed Roger Rabbit?, a live action–animation combination.
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