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Business Wars

Disney-Pixar vs Dreamworks | Regime Change | 3

Business Wars

Audible

History, David Brown, Business, Management

4.613.5K Ratings

🗓️ 1 March 2023

⏱️ 42 minutes

🧾️ Download transcript

Summary

It’s the 2000s and Disney and Pixar are locked in a high-stakes game of chicken. Disney’s deal with Pixar is about to end and renewal talks are snarled up. The dream team that introduced the world to computer animated movies is careening towards divorce.


And with neither Disney CEO Michael Eisner nor Pixar boss Steve Jobs willing to cede ground, DreamWorks boss Jeffrey Katzenberg is about to forget tradition and go all out to become Hollywood’s new animation champ.

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Transcript

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0:00.0

Summer 2002, Palo Alto, California. Roy Disney picks up the winepidle and refills his glass.

0:20.0

He's the 72-year-old nephew of Walt Disney, and the last family member still involved with

0:25.0

the corporation. Roy's sitting in the dining room of Steve Jobs' English-style country home,

0:31.0

because he and Jobs share a mutual problem. Disney's CEO, Michael Eisner. Roy

0:38.2

sips his wine as the Apple CEO and picks our chairman, Vince. Michael attacked me. He attacked

0:45.4

Apple. He told Congress that I run a business built on copyright theft, a total lie. How can I work

0:52.9

with someone like that? I can't trust him. Roy nods. He shouldn't trust him. He put a spy in Disney

0:59.9

animation to keep tabs on me. It's because I stand up to him. You see, my role, and actually my

1:07.9

duty is to protect Walt s legacy, to ensure Disney doesn't lose its magic. Michael only cares about

1:14.9

short-term profits. He's nickel in diming the amusement parks. I'm not sure that even animation is safe anymore.

1:21.9

Jobs smiles. His hunch that Roy could be a potential ally was right. Agreed. Disney used to be the master of animation. Now it makes embarrassing

1:34.9

duds. Roy peers into his wine glass. There's a look of sorrow on his face. Michael wasn't always like this. When I staged the boardroom coup at 84 and made him CEO, it was wonderful.

1:49.9

It was like the scene in the Wizard of Oz where the munchkins dance and sing ding dong, the witch is dead. Well, now Michael is the witch.

1:59.9

Jobs senses its time to show his hand. Next year Pixar will start talks with Disney about renewing their partnership.

2:07.9

Jobs wants to reduce Disney's role to being nothing more than Pixar's distributor. He's had enough of Pixar being bossed around by Disney.

2:16.9

He wants Pixar to be a truly independent studio, free to decide its own destiny, just like Dreamworks. But he knows Eisner will never accept that. So he wants Roy's help.

2:29.9

Jobs stares into Roy's eyes. Roy, Pixar and Disney working together was probably the most successful partnership in movie history, and it was great while it lasted.

2:41.9

But when the current deal ends, Pixar will leave Disney. I will never make a deal with Disney while Michael's there.

2:51.9

Roy's eyes widen. He knows that losing Pixar would devastate Disney. Disney ruled animation in the 20th century, but Pixar is the only thing saving it from irrelevance in the 21st.

3:04.9

And for Roy, animation isn't just another business division. It's the soul of Disney. He can't let this happen.

3:13.9

So, after his dinner with Jobs, Roy starts using his influence as a Disney board member to press your Eisner to make a deal with Pixar at any cost.

3:26.9

Just as Jobs hoped he would. Jobs has just used Roy to put Eisner in check. But it's not checkmate yet. And Eisner still believes he can win this game.

...

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