Part 2: Where Would Apple be without Toy Story? Steve Jobs Return to Apple

But last episode, we went through the whole exile period, is what we're calling it.

1985, Steve Jobs is forced out of Apple, his baby, the company he founded, after a scuffle with the one person he thought was going to take it to the next level being John Scully the board of directors sides with Scully and having his responsibilities diminished Steve Jobs decides to leave Apple And start a new computer company once again.

Like he did with Apple so many years ago.

And that company is next.

Looking to build revolutionary software.

Commercial grade hardware.

and all of that comes together with a huge price tag which ultimately sort of leads to the downfall of next and sometime in the middle steve writes a check to pixar to become the principal investor there really kind of pick them out of the water and save them they get all the way through a couple example films they get through trying to have the company focus on medical and industrial imaging and then they realize animation is maybe where they should go and then Toy Story comes out they IPO it's great success Steve Jobs becomes a billionaire and as well as a brilliant founder once again and he's sort of in a transition period to a complete leader somebody who's more mature and more kind of apt to have people want to work with him wouldn't you agree Sean?

Definitely.

He's at a company, Pixar, where he does not have the professional insight that he did at Apple when he was at Macintosh or Apple.

It was his baby, literally.

The machine that he developed was his.

There was nobody in the world who knew more about what was developed than Steve Jobs.

And so he is known for being meticulously hands-on with a lot of every single decision in product development.

But when he got to Pixar, he was far from that expert.

He was an individual who was writing checks.

He was keeping them afloat.

He was the one who was able to keep Pixar going because he knew that the technology that they had and the intersection of art and technology was... beyond what anyone else was doing at the time he believed in them he saw the vision he knew the potential that it had and he stayed with it n until he saw it to fruition beyond seeing it fruition to fruition he didn't just sell it off He offered an IPO.

And at that point in time, I think he owned roughly 80% of Pixar.

Does that sound about right? And at the IPO, I think he sold 20%.

I'm not sure exactly how much of his stock he sold, but it was quite a bit.

So what's important there is it made him a billionaire once they IPO'd.

And it was a strategic IPO considering the fact that they were inking deals with Disney.

And he really kind of leveraged that to protect himself and protect his stake against Disney for the first time.