Why Did George Lucas Sell the Group That Became Pixar?

Ben Gilbert and David Rosenthal say George Lucas sold the graphics group because he was getting divorced and needed cash. He believed so deeply in Star Wars that he would not give his former wife any equity in Lucasfilm, so he sold the group instead of the studio. That sale is the accident that later let Pixar save Disney.

Steve Jobs, introduced by Alan Kay, visited Lucasfilm, then went dark while he was being pushed out of Apple. He came back wanting the team and the technology as the seed of a computer company that could rival Apple. The team refused. Jobs started that computer company on his own, then agreed to buy the film group out of Lucasfilm.

In 1986 he wrote a $5 million check to George Lucas and another $5 million into the new company. It was named Pixar, owned 70% by Steve Jobs and 30% by the employees.