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Everything about Pixar Animation Studios totally explained

Pixar Animation Studios is an American CGI animation studio based in Emeryville, California, United States, and is notable for its eight Academy Awards. It is best known for its CGI-animated feature films, including Toy Story, Finding Nemo, The Incredibles, and Cars, which are created with PhotoRealistic RenderMan, its own implementation of the industry-standard Renderman image rendering API, used to generate high-quality images. The Walt Disney Company bought Pixar in 2006 from majority shareholder Steve Jobs—who had previously acquired it from Lucasfilm—through an all-stock transaction worth US$7.4 billion.

History

Early history

Pixar was founded as the Graphics Group, one third of the Computer Division of Lucasfilm that was launched in 1979 with the hiring of Dr. Ed Catmull from the New York Institute of Technology (NYIT). At NYIT, the researchers worked on an experimental film called The Works. When the group moved to Lucasfilm, the team worked on creating the precursor to RenderMan, called Motion Doctor, which allowed traditional cel animators to use computer animation with minimal training. He paid $5 million to George Lucas and put $5 million as capital into the company, and the Computer Division was renamed Pixar, a fake Spanish word that means "to make pictures", "to make pixels"(External Link)(External Link). A contributing factor to the sale was an increase in cash flow difficulties following Lucas' 1983 divorce, which coincided with the sudden drop off in revenues from Star Wars licenses following the release of and the disastrous box office performance of Howard the Duck.
   Initially, Pixar was a high-end computer hardware company whose core product was the Pixar Image Computer, a system primarily sold to government agencies and the medical community. One of the leading buyers of Pixar Image Computers was Disney studios, which was using the device as part of their secretive CAPS project, using the machine and custom software to migrate the laborious Ink and Paint part of the 2D animation process to a more automated and thus efficient method. The Image Computer never sold well.
   As poor sales of Pixar's computers threatened to put the company out of business, Lasseter's animation department began producing computer-animated commercials for outside companies. Early successes included campaigns for Tropicana, Listerine, and LifeSavers. During this period, Pixar continued its relationship with Walt Disney Feature Animation, a studio whose corporate parent would ultimately become its most important partner. In 1991, after substantial layoffs in the company's computer department, Pixar made a $26 million deal with Disney to produce three computer-animated feature films, the first of which was Toy Story. Despite this, the company was costing Jobs so much money that he considered selling it. Only after confirming that Disney would distribute Toy Story for the 1995 holiday season did he decide to give it another chance. Pixar was re-incorporated on December 9, 1995.

Disney

Pixar and Disney had disagreements after the production of Toy Story 2. Originally intended as a straight-to-video release (and thus not part of Pixar's three picture deal), the film was eventually upgraded to a theatrical release during production. Pixar demanded that the film then be counted toward the three picture agreement, but Disney refused. Pixar's first five feature films have collectively grossed more than $2.5 billion, equivalent to the highest per-film average gross in the industry. Though profitable for both, Pixar later complained that the arrangement wasn't equitable. Pixar was responsible for creation and production, while Disney handled marketing and distribution. Profits and production costs were split 50-50, but Disney exclusively owned all story and sequel rights and also collected a distribution fee. The lack of story and sequel rights were perhaps the most onerous to Pixar and set the stage for a contentious relationship.
   The two companies attempted to reach a new agreement in early 2004. The new deal would be only for distribution, as Pixar intended to control production and own the resulting film properties themselves. The company also wanted to finance their films on their own and collect 100 percent of the profits, paying Disney only the 10 to 15 percent distribution fee. More importantly, as part of any distribution agreement with Disney, Pixar demanded control over films already in production under their old agreement, including The Incredibles and Cars. These conditions were unacceptable to Disney, but Pixar wouldn't concede.
   Disagreements between Steve Jobs and Disney Chairman and CEO Michael Eisner made the negotiations more difficult than they otherwise might have been. They broke down completely in mid-2004, with Jobs declaring that Pixar was actively seeking partners other than Disney. However, Pixar didn't enter negotiations with other distributors, since other partners saw Pixar's terms as too demanding. After a lengthy hiatus, negotiations between the two companies resumed following the departure of Eisner from Disney in September of 2005. In preparation for potential fallout between Pixar and Disney, Jobs announced in late 2004 that Pixar would no longer release movies at the Disney-dictated November time frame, but during the more lucrative early summer months. This would also allow Pixar to release DVDs for their major releases during the Christmas shopping season. An added benefit of delaying Cars was to extend the time frame remaining on the Pixar-Disney contract to see how things would play out between the two companies.
   Pending the Disney acquisition of Pixar, the two companies created a distribution deal for the intended 2007 release of Ratatouille, in case the acquisition fell through, to ensure that this one film would still be released through Disney's distribution channels. (In contrast to the earlier Disney/Pixar deal Ratatouille was to remain a Pixar property and Disney would have received only a distribution fee.) The completion of Disney's Pixar acquisition, however, nullified this distribution arrangement.

Acquired by Disney

Disney announced on January 24, 2006 that it had agreed to buy Pixar for approximately $7.4 billion in an all-stock deal. Following Pixar shareholder approval, the acquisition was completed May 5, 2006. The transaction catapulted Steve Jobs, who was the majority shareholder of Pixar with 50.1%, to Disney's largest individual shareholder with 7% and a new seat on its board of directors. Jobs' new Disney holdings outpace holdings belonging to ex-CEO Michael Eisner, the previous top shareholder who still held 1.7%, and Disney Director Emeritus Roy E. Disney who held almost 1% of the corporation's shares. Roy Disney's criticisms of Eisner included the soured Pixar relationship and accelerated Eisner's ouster.
   As part of the deal, Lasseter, Pixar Executive Vice President and co-founder, became Chief Creative Officer (reporting to President and CEO Robert Iger and consulting with Disney Director Roy Disney) of both Disney and Pixar Animation Studios, as well as the Principal Creative Adviser at Walt Disney Imagineering, which designs and builds the company's theme parks. Some of those conditions were that Pixar HR policies would remain intact, including the lack of employment contracts. Also, the Pixar name was guaranteed to continue, and the studio would remain in its current Emeryville, California location with the "Pixar" sign. Finally, branding of films made post-merger would be "Disney•Pixar" (beginning with Cars).
   Today, Edwin Catmull serves as president of the combined Disney-Pixar animation studios, and John Lasseter serves as the studios' Chief Creative Officer. Catmull reports to Robert Iger as well as Walt Disney Studios chairman Dick Cook. Lasseter, who has greenlight authority on all new films, also reports to Iger as well as consulting with Roy E. Disney.

Feature films

Traditions

While some of Pixar's first animators were former cel animators, including John Lasseter, they also came from stop motion animation, computer animation, or had recently graduated from college. Pixar films follow the same theme of self improvement. With the help of friends or family, a character ventures out into the real world and learns to appreciate his friends and family. At the core, according to John Lasseter, "it's gotta be about the growth of the main character, and how he changes." Every Pixar film has included cameo appearances of characters or objects from Pixar's other movies or short films, as well as characters voiced by John Ratzenberger. Ratzenberger has been called "Pixar's good luck charm" since he's played a role in each Pixar feature.

Locations

Pizza Planet is a fictional pizza restaurant that appears in Toy Story. It is a large, sci-fi themed restaurant with arcade games. There is a reference to Pizza Planet in every Pixar film to date, either the restaurant itself or the Pizza Planet delivery truck which is stolen by the toys in Toy Story 2 and has a ride hitched on it by Buzz and Woody in Toy Story. It can also be seen in A Bug's Life, in the scene where one insect tells another not to touch the motorhome light, and Monsters, Inc., when Randall is getting beat up with the shovel, it can be seen on the far left. The company runs a fleet of beat up Toyota Hilux pickup trucks, as seen in Toy Story 1 and 2 (though in Toy Story 2, the truck model is called a "Gyoza"). In Finding Nemo, while Gill is explaining his plan to escape from the office, a yellow Pizza Planet truck drives by. In the movie Cars, there's a Pizza Planet truck in the end at the stadium. Pizza Planet restaurants at Walt Disney World's Disney's Hollywood Studios and Disneyland Paris are named after the site in the film and are designed to resemble it as much as possible.
   Dinoco is a fictional oil company that first appeared in Toy Story as a small gas station and later had more prominent visibility in Cars. Dinoco is a sponsor of the Piston cup, and is the main sponsor of The King, a veteran racer on the verge of retirement. The company's lavish sponsorship is highly sought after by the main character Lightning McQueen and rival Chick Hicks. The Dinoco brand has also been featured in much Cars-related merchandise.

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