Ed Catmull: Testing the Waters
5 May 2014 · 1 min

1:23
Ed Catmull recalls when Steve Jobs lost $54 million and fielded offers from Microsoft. Jobs wasn't actually trying to sell Pixar, he was testing the market to prove what the company was worth.

Ed Catmull recalls when Steve Jobs lost $54 million and fielded offers from Microsoft. Jobs wasn't actually trying to sell Pixar, he was testing the market to prove what the company was worth.
It was a very unusual time. First of all, we were losing a lot of money. And so by the time we had done with this, Steve was $54 million in the hole. So that puts us in an unusual circumstance because you logically was Steve. And this was before Steve Jobs was really rich. This was like a substantial portion of his net worth at that time, as I understand it. Yeah, I think the Biograph said He was worth $100 million at the time, which I don't think was true. I think it was probably double that. But he never said. But $54 million out of any one of them is a significant chunk. So it was very difficult for him. So he would sell. But what he would do when he would try to sell, like to Microsoft, he asked for this number, which is outrageously high, and they came back with a really big number, but it wasn't the number he asked for. So I'm thinking, well, okay, it's over with. I know it's too big of a hole for Steve, so they will compromise in the middle. But Steve wouldn't compromise. And this happened three times. So finally I realized he's actually not trying to sell us. He's trying to validate whether or not we're worth something. And as soon as somebody says we're worth something, well, he's not going to let them have us.

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