Chapter 82: Pixar Changes Hands

[Chapter 82: Pixar Changes Hands]

In Richmond, California, Eric had been on the scene for three days. During this time, he had hired a specialized team from Silicon Valley to conduct a thorough appraisal of Pixar's assets. Steve Jobs, eager to finalize the deal, expressed his dissatisfaction with Eric's "needless investigations," but there wasn't much he could do. Eric wasn't concerned about Jobs' feelings.

Although Jobs' talent was undeniably impressive, his character left much to be desired. This was a man who had publicly claimed impotence just to dodge child support for an out-of-wedlock daughter. Therefore, Eric felt it was essential to evaluate Pixar in detail rather than rush through the deal.

Three days later, in Pixar's single-floor office in Richmond, Eric placed a thick stack of appraisal documents on the conference table. He lightly tapped his fingers on the surface and said to Jobs, who sat across from him, "Steve, I had every intention of buying Pixar, but unfortunately, I haven't seen your sincerity."

Jobs remained unfazed by Eric's tone, wearing an expression that conveyed the frustration of someone knowledgeable dealing with an amateur. "Eric, if you have any doubts, feel free to share them. I will respond earnestly. Accusing me of insincerity is quite severe."

Eric felt a mix of admiration and annoyance at Jobs' unflappable demeanor. Despite whatever inner thoughts he grappled with, Jobs showed no signs of discomfort -- an impressive calmness that even someone with Eric's experience found difficult to muster.

Not wanting to engage in psychological games with Jobs, Eric got straight to the point. "Alright, Steve, let me be direct. The reason I want to acquire Pixar is primarily for its 3D animation technology, so your sale of the hardware department doesn't bother me."

As Eric flipped through the documents, he continued, "However, my research indicates that three core software ownership rights from Pixar's graphics rendering software package were recently transferred to your Next computer company. Moreover, while the core animation production system remains intact, one essential coloring software's ownership has changed hands. This software is crucial for Pixar's contracts with Disney for 2D animation projects, as it significantly reduces the time needed for coloring. I need you to explain that."

Jobs was certainly no naive player; he was trying to pull a fast one on Eric, hoping to mislead this newcomer. If successful, he could sell those software rights for millions. Some might wonder how much those software programs were really worth, but one could simply look at Microsoft's empire to answer that.

What Jobs didn't realize was that Eric might be inexperienced, but he knew to leave matters to the experts. He had specifically hired a professional evaluation team from Silicon Valley, a hub full of tech geniuses and cunning entrepreneurs, who quickly caught wind of Jobs' little maneuvers.

After Eric made his demands, Jobs had already lost much of his optimism. But with his bravado, he wouldn't easily back down even when confronted with the truth.

"Eric, in the four years since I took over Pixar, I invested at least $50 million into the company, and I only sold the hardware department for $16 million. Your offer of $20 million is little more than enough to cover what I still retain at Pixar," Jobs stated.

Eric responded with a mocking smile, shutting the folder with a thud. Leaning on the table, he locked eyes with Jobs and said, "Steve, it seems you're still reluctant to accept your failures. Let me make this clear: You have failed in this deal to acquire Pixar from Lucas, and a failure must accept loss. To save your Next computer company, you'll have to sell me Pixar's software department at a fair price. So, return that software and then we can discuss the rest."

Jobs' expression flickered between shock and anger. As someone who thrived on pride, it had to sting to be chastised for failure by someone over a decade younger. Watching from outside, John Lasseter and others pretended to be busy while secretly enjoying the heated exchange.

Jobs had never been a friendly boss. Whenever he visited Pixar, he would scrutinize every creator's work, tearing apart their efforts, only to dangle the prospect of regaining managerial stock as a hollow reward when he presented a check.

Over the years, those tactics had turned Pixar into Jobs' personal property, stripping the management team of every last share. Finally seeing Jobs on the receiving end of criticism lightened the mood for his would-be employees -- no longer would they be under the thumb of such an arrogant figure.

In the conference room, Jobs held a firm expression and said, "Mr. Williams, your desire to acquire Pixar must be to produce animated films, right? Given your recent string of successes, many people are likely watching your actions. If I let slip that you were interested in Pixar, it could attract other buyers, perhaps even higher bids. Don't you think?"

Eric's ring finger twitched slightly -- a detail that Jobs failed to notice. Shaking off his worries, Eric replied with a cold chuckle, "Mr. Jobs, that remark of yours is worth $1 million. I dislike being manipulated, so I'm lowering my offer to $19 million. Pixar is like a camera; under my direction, it can produce hits like Home Alone or Pretty Woman, but with other directors, who knows what might come out? So, $19 million for the complete Pixar software department. If you've thought it over, call me before I leave Richmond."

With that, Eric gathered his belongings and left the Pixar office. His private attorney, Edward, quickly followed. It took a long while before Jobs finally exited the conference room, casting a cold glance at the employees either working or pretending to work, unusually silent as he left Pixar headquarters.

...

The following morning, Eric and Jobs met once more in the conference room.

Many business negotiations played out in a similar fashion, often requiring multiple rounds of debate. Even if they had nearly come to blows the last time, they still had to put their differences aside for another round of discussions and strategies.

Today, Jobs appeared with noticeable dark circles under his eyes. "Eric, what I did previously wasn't wrong. Everyone strives for their own interests. I agree to return the software, but the price must remain at $20 million. We're rational adults; we can't lower the figure by a million just because of a comment -- that's child's play."

Eric didn't want to push Jobs too far; if things collapsed, he could conceivably invest in building a separate animation studio. However, developing the necessary software and accumulating sufficient technical expertise would take years and a significant amount of money. Despite Eric's wealth, he lacked the time to build such a technical foundation.

Everyone knew that 3D animated films and their ancillary businesses could yield massive profits, yet only a few well-known animation studios in Hollywood had emerged. This was due to their technological advancements that outpaced their competition by years, thereby securing their market position.

For others trying to catch up, the stakes were daunting. You may reach a competent level after years of effort, but your rivals would have been advancing even as you started. The pattern meant that newcomers constantly found it hard to keep pace with established giants.

In the conference room, the two men sparred for another half-hour. Eric couldn't just retract all he had said previously. Eventually, both parties made small concessions and settled on a price of $19.5 million.

Once the terms were confirmed, Eric readily signed the contract for the software rights. Jobs put away the check, glanced over at the employees who had worked under him for years, and, without anything more to say, nodded and turned to leave Pixar headquarters.

*****

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