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��It��s kind of fun to do the impossible,�� Walt Disney once said. That was the type of attitude that appealed to Jobs.

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He admired Disney��s obsession with detail and design, and he felt that there was a natural

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fit between Pixar and the movie studio that Disney had founded. The Walt Disney Company had licensed

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Pixar��s Computer Animation Production System, and that made it the largest customer for Pixar��s computers. One

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day Jeffrey Katzenberg, the head of Disney��s film division, invited Jobs down to the Burbank studios

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to see the technology in operation. As the Disney folks were showing him around, Jobs turned

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to Katzenberg and asked, ��Is Disney happy with Pixar?�� With great exuberance, Katzenberg answered yes. Then

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Jobs asked, ��Do you think we at Pixar are happy with Disney?�� Katzenberg said he assumed

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so. ��No, we��re not,�� Jobs said. ��We want to do a film with you. That would

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make us happy.�� Katzenberg was willing. He admired John Lasseter��s animated shorts and had tried unsuccessfully to

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lure him back to Disney. So Katzenberg invited the Pixar team down to discuss partnering on

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a film. When Catmull, Jobs, and Lasseter got settled at the conference table, Katzenberg was forthright.

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��John, since you won��t come work for me,�� he said, looking at Lasseter, ��I��m going to

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make it work this way.�� Just as the Disney company shared some traits with Pixar, so Katzenberg

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shared some with Jobs. Both were charming when they wanted to be, and aggressive (or worse)

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when it suited their moods or interests. Alvy Ray Smith, on the verge of quitting Pixar,

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was at the meeting. ��Katzenberg and Jobs impressed me as a lot alike,�� he recalled. ��Tyrants

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with an amazing gift of gab.�� Katzenberg was delightfully aware of this. ��Everybody thinks I��m a

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tyrant,�� he told the Pixar team. ��I am a tyrant. But I��m usually right.�� One can

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imagine Jobs saying the same. As befitted two men of equal passion, the negotiations between Katzenberg and

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Jobs took months. Katzenberg insisted that Disney be given the rights to Pixar��s proprietary technology for

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making 3-D animation. Jobs refused, and he ended up winning that engagement. Jobs had his own

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demand: Pixar would have part ownership of the film and its characters, sharing control of both

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video rights and sequels. ��If that��s what you want,�� Katzenberg said, ��we can just quit talking

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and you can leave now.�� Jobs stayed, conceding that point. Lasseter was riveted as he watched the

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two wiry and tightly wound principals parry and thrust. ��Just to see Steve and Jeffrey go

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at it, I was in awe,�� he recalled. ��It was like a fencing match. They were

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both masters.�� But Katzenberg went into the match with a saber, Jobs with a mere foil.

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Pixar was on the verge of bankruptcy and needed a deal with Disney far more than

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Disney needed a deal with Pixar. Plus, Disney could afford to finance the whole enterprise, and

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Pixar couldn��t. The result was a deal, struck in May 1991, by which Disney would own

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the picture and its characters outright, have creative control, and pay Pixar about 12.5% of the

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ticket revenues. It had the option (but not the obligation) to do Pixar��s next two films

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and the right to make (with or without Pixar) sequels using the characters in the film.

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Disney could also kill the film at any time with only a small penalty. The idea that

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John Lasseter pitched was called ��Toy Story.�� It sprang from a belief, which he and Jobs

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shared, that products have an essence to them, a purpose for which they were made. If

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the object were to have feelings, these would be based on its desire to fulfill its

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essence. The purpose of a glass, for example, is to hold water; if it had feelings,

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it would be happy when full and sad when empty. The essence of a computer screen

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is to interface with a human. The essence of a unicycle is to be ridden in

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a circus. As for toys, their purpose is to be played with by kids, and thus

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their existential fear is of being discarded or upstaged by newer toys. So a buddy movie

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pairing an old favorite toy with a shiny new one would have an essential drama to

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it, especially when the action revolved around the toys�� being separated from their kid. The original

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treatment began, ��Everyone has had the traumatic childhood experience of losing a toy. Our story takes

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the toy��s point of view as he loses and tries to regain the single thing most

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important to him: to be played with by children. This is the reason for the existence

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of all toys. It is the emotional foundation of their existence.�� The two main characters went through

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many iterations before they ended up as Buzz Lightyear and Woody. Every couple of weeks, Lasseter

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and his team would put together their latest set of storyboards or footage to show the

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folks at Disney. In early screen tests, Pixar showed off its amazing technology by, for example,

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producing a scene of Woody rustling around on top of a dresser while the light rippling

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in through a Venetian blind cast shadows on his plaid shirt��an effect that would have been

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almost impossible to render by hand. Impressing Disney with the plot, however, was more difficult. At

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each presentation by Pixar, Katzenberg would tear much of it up, barking out his detailed comments

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and notes. And a cadre of clipboard-carrying flunkies was on hand to make sure every suggestion

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and whim uttered by Katzenberg received follow-up treatment. Katzenberg��s big push was to add more edginess to

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the two main characters. It may be an animated movie called Toy Story, he said, but

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it should not be aimed only at children. ��At first there was no drama, no real

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story, and no conflict,�� Katzenberg recalled. He suggested that Lasseter watch some classic buddy movies, such

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as The Defiant Ones and 48 Hours, in which two characters with different attitudes are thrown

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together and have to bond. In addition, he kept pushing for what he called ��edge,�� and

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that meant making Woody��s character more jealous, mean, and belligerent toward Buzz, the new interloper in

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the toy box. ��It��s a toy-eat-toy world,�� Woody says at one point, after pushing Buzz out

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of a window. After many rounds of notes from Katzenberg and other Disney execs, Woody had been

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stripped of almost all charm. In one scene he throws the other toys off the bed

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and orders Slinky to come help. When Slinky hesitates, Woody barks, ��Who said your job was

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to think, spring-wiener?�� Slinky then asks a question that the Pixar team members would soon be

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asking themselves: ��Why is the cowboy so scary?�� As Tom Hanks, who had signed up to ## be Woody��s voice, exclaimed at one point, ��This guy��s a real jerk!�� Cut! Lasseter and his Pixar team

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had the first half of the movie ready to screen by November 1993, so they brought

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it down to Burbank to show to Katzenberg and other Disney executives. Peter Schneider, the head

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of feature animation, had never been enamored of Katzenberg��s idea of having outsiders make animation for

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Disney, and he declared it a mess and ordered that production be stopped. Katzenberg agreed. ��Why

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is this so terrible?�� he asked a colleague, Tom Schumacher. ��Because it��s not their movie anymore,��

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Schumacher bluntly replied. He later explained, ��They were following Katzenberg��s notes, and the project had been

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driven completely off-track.�� Lasseter realized that Schumacher was right. ��I sat there and I was pretty much

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embarrassed with what was on the screen,�� he recalled. ��It was a story filled with the

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most unhappy, mean characters that I��ve ever seen.�� He asked Disney for the chance to retreat

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back to Pixar and rework the script. Katzenberg was supportive. Jobs did not insert himself much into

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the creative process. Given his proclivity to be in control, especially on matters of taste and

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design, this self-restraint was a testament to his respect for Lasseter and the other artists at

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Pixar��as well as for the ability of Lasseter and Catmull to keep him at bay. He

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did, however, help manage the relationship with Disney, and the Pixar team appreciated that. When Katzenberg

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and Schneider halted production on Toy Story, Jobs kept the work going with his own personal

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funding. And he took their side against Katzenberg. ��He had Toy Story all messed up,�� Jobs

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later said. ��He wanted Woody to be a bad guy, and when he shut us down

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we kind of kicked him out and said, ��This isn��t what we want,�� and did it

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the way we always wanted.�� The Pixar team came back with a new script three months later.

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The character of Woody morphed from being a tyrannical boss of Andy��s other toys to being

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their wise leader. His jealousy after the arrival of Buzz Lightyear was portrayed more sympathetically, and

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it was set to the strains of a Randy Newman song, ��Strange Things.�� The scene in

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which Woody pushed Buzz out of the window was rewritten to make Buzz��s fall the result

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of an accident triggered by a little trick Woody initiated involving a Luxo lamp. Katzenberg &

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Co. approved the new approach, and by February 1994 the film was back in production. Katzenberg had

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been impressed with Jobs��s focus on keeping costs under control. ��Even in the early budgeting process,

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Steve was very eager to do it as efficiently as possible,�� he said. But the $17 ## million production budget was proving inadequate, especially given the major revision that was necessary after Katzenberg

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had pushed them to make Woody too edgy. So Jobs demanded more in order to complete

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the film right. ��Listen, we made a deal,�� Katzenberg told him. ��We gave you business control, and you agreed to do it for the amount we offered.�� Jobs was furious. He would call Katzenberg by phone or fly down to visit him and be, in Katzenberg��s words, ��as wildly relentless as only Steve can be.�� Jobs insisted that Disney was liable for the cost overruns because Katzenberg had so badly mangled the original concept that it required extra work to restore things. ��Wait a minute!�� Katzenberg shot back. ��We were helping you. You got

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the benefit of our creative help, and now you want us to pay you for that.�� It was a case of two control freaks arguing about who was doing the other a favor. Ed Catmull, more

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diplomatic than Jobs, was able to reach a compromise new budget. ��I had a much more

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positive view of Jeffrey than some of the folks working on the film did,�� he said.

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But the incident did prompt Jobs to start plotting about how to have more leverage with

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Disney in the future. He did not like being a mere contractor; he liked being in

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control. That meant Pixar would have to bring its own funding to projects in the future,

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and it would need a new deal with Disney. As the film progressed, Jobs became ever more

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excited about it. He had been talking to various companies, ranging from Hallmark to Microsoft, about

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selling Pixar, but watching Woody and Buzz come to life made him realize that he might

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be on the verge of transforming the movie industry. As scenes from the movie were finished,

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he watched them repeatedly and had friends come by his home to share his new passion.

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��I can��t tell you the number of versions of Toy Story I saw before it came

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out,�� said Larry Ellison. ��It eventually became a form of torture. I��d go over there and

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see the latest 10% improvement. Steve is obsessed with getting it right��both the story and the

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technology��and isn��t satisfied with anything less than perfection.�� Jobs��s sense that his investments in Pixar might actually

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pay off was reinforced when Disney invited him to attend a gala press preview of scenes

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from Pocahontas in January 1995 in a tent in Manhattan��s Central Park. At the event, Disney

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CEO Michael Eisner announced that Pocahontas would have its premiere in front of 100,000 people on

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eighty-foot-high screens on the Great Lawn of Central Park. Jobs was a master showman who knew

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how to stage great premieres, but even he was astounded by this plan. Buzz Lightyear��s great

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exhortation����To infinity and beyond!����suddenly seemed worth heeding. Jobs decided that the release of Toy Story that November

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would be the occasion to take Pixar public. Even the usually eager investment bankers were dubious

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and said it couldn��t happen. Pixar had spent five years hemorrhaging money. But Jobs was determined.

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��I was nervous and argued that we should wait until after our second movie,�� Lasseter recalled.

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��Steve overruled me and said we needed the cash so we could put up half the [chenrenfan10.22] money for our films and renegotiate the Disney deal.��