George Lucas sold the Lucasfilm computer graphics division that became Pixar in 1986. Steve Jobs purchased the division and helped establish it as an independent company, initially known as Pixar.
The group began inside Lucasfilm’s Computer Division in 1979, under the leadership of computer-graphics pioneer Ed Catmull. Its work included advanced image processing, digital effects research, and the development of the Pixar Image Computer. Although closely associated with Industrial Light & Magic, the group was technically a separate computer-graphics operation within Lucasfilm.
The 1986 sale was a turning point. Jobs became Pixar’s chairman, Catmull remained president, and the company began pursuing hardware, software, commercials, and animated shorts. John Lasseter’s Luxo Jr., completed that year, demonstrated the creative possibilities of the technology.
Pixar did not become a major feature-animation studio immediately. Its breakthrough arrived with Toy Story in 1995, the first fully computer-animated feature film, followed by Disney’s acquisition of Pixar in 2006.