The essence of the clash between Steve Jobs and Michael Eisner was revealed in one moment of the Pixar-Disney partnership. Shortly before “Finding Nemo’‘ was released in 2003, Eisner met with the Disney board of directors and offered a prediction: Pixar was headed for a “reality check.’‘ Early clips of the clown fish movie had failed to impress him, he said. The movie paled in comparison to “Toy Story’‘ or “Monsters, Inc.’‘ and would not sell as many tickets.
It was as if Eisner were reveling in the idea of a Pixar dud. Such a stark reality check would give him bargaining power in the upcoming contract-renewal negotiations with Steve Jobs. If “Finding Nemo’‘ flopped at the box office, Steve would lose the leverage he had gained from previous Pixar blockbusters. Unlike the last negotiation, he would not be able to push for more favorable terms. Eisner desperately needed to protect every dime of Disney profits, which had slipped an incredible 41 percent in the first quarter of 2003. Though Disney would lose profits in the short term with a “Nemo’‘ flop, it would win in the long term with a favorable Pixar-Disney contract.
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Last modified: May 2, 2005