The establishment of DreamWorks might not immediately show its impact on Hollywood, but everyone in the industry knew that the big seven studios would not sit idly by and watch DreamWorks rise.
Of course, these matters had little to do with Ryan; he was merely witnessing a historic moment. Compared to DreamWorks, he was more concerned with Blue Sky Studios.
Founded in 1987, Blue Sky Studios had its office on the second floor of a dentist’s office in Briarcliff Manor, New York. Its founder, Chris Wedge, was a longtime friend of John Lasseter, a founding member and creative director at Pixar.
Unexpectedly, the two would eventually become competitors.
Like Pixar, Blue Sky Studios was not doing well financially and lacked the technology to produce 3D animated feature films. At best, it was a studio that created special effects for movies, TV shows, and other entertainment programs, not a true animation studio.
It wasn’t until the early 1990s that Blue Sky Studios began working on film visual effects, participating in several Hollywood films.
The difference between Blue Sky Studios and Pixar was that Blue Sky’s operations were slightly better. However, Pixar had a cooperation agreement with Disney and had been preparing to make the first-ever 3D animated feature since 1991, with “Toy Story” expected to release next year.
Meanwhile, Blue Sky Studios remained a special effects studio.
According to the previous timeline, it wasn’t until 1998 that Blue Sky Studios released the short film “Bunny,” which won the 71st Academy Award for Best Animated Short Film. This seven-minute short film represented eight years of effort and laid the foundation for the future production of the renowned “Ice Age.”
However, Blue Sky Studios was currently in a difficult position. On one hand, Disney’s hand-drawn animated feature “The Lion King” was a massive success, indicating that the prospects for hand-drawn animation were still strong. On the other hand, Pixar’s first 3D animated feature, years in the making, was about to be released.
In this context, Ryan and his team arrived at Blue Sky Studios, about to meet the famous founder Chris Wedge in person.
In his previous life, Chris Wedge was considered a legendary figure.
As soon as they got out of the car, Sofia couldn’t help but complain, “I don’t understand why you want to buy such a small special effects studio!”
The group was already puzzled by Ryan’s decision. While buying the rights to Marvel’s superhero characters made sense for future films, acquiring a small special effects studio seemed pointless.
Soon, they met the renowned Chris Wedge.
“Mr. Chris, it’s an honor to meet you.” Ryan was very humble, as he had high hopes for investing in Blue Sky Studios.
It was an investment, not a takeover. Without Chris Wedge, Blue Sky Studios would lose its value.
“Mr. Ryan, you’re just as young as they say,” Chris Wedge said with a hint of surprise. He didn’t expect the investor to be so young and already somewhat famous in Hollywood.
“I’ve seen your film ‘Saw,’ and it’s fantastic.”
“But I have a question: why would you want to invest in a special effects studio?”
He was genuinely curious. Most Hollywood professionals wouldn’t see value in a small special effects studio. Moreover, the investment he mentioned wasn’t a small amount but millions of dollars.
“It’s simple. I believe in the future of 3D animation. With advancing technology, 3D animation will become mainstream,” Ryan explained frankly. “Besides Pixar and John Lasseter, only you and Blue Sky Studios have the potential to create 3D animated feature films.”
“Perhaps you’re right,” Chris Wedge said, with a hint of regret. “But unfortunately, Blue Sky Studios doesn’t have the capability to make a 3D animated feature film. You should invest in Pixar; they’re the only ones with the technology for 3D animated features.”
Chris Wedge had been called the “John Lasseter of the East Coast” by some media. However, even he had to admit that the gap between them was widening.
“That’s why I’m here,” Ryan continued. “If the investment agreement is reached, I will immediately invest $3 million to produce the first experimental short film to explore 3D animation technology.”
“Before Christmas next year, I will invest at least $30 million more to prepare for the first 3D animated feature film. Besides necessary financial oversight, I won’t interfere in the daily management or creative matters of the studio.”
In essence, Ryan wanted to be an investor, not the one running Blue Sky Studios.
An investment of $33 million was hard to ignore, even for Chris Wedge. After a long silence, he said, “Blue Sky Studios is not Pixar. A $30 million budget might not be enough to produce a 3D animated feature film.”
Ryan’s expression remained unchanged, and he agreed immediately. “Fine.”
“However, I want an 80% stake in Blue Sky Studios. As the founder, you will retain 10%, and the remaining 10% will be allocated to the studio’s creative team.”
To ensure a dedicated team, some shares needed to be given away.
Giving away 20% of the shares in exchange for Blue Sky Studios’ rise was a worthwhile trade.
“80% of the shares?”
Chris Wedge was understandably reluctant to give up the studio he had built. But faced with such favorable terms and millions of dollars in investment for a 3D animated feature, he couldn’t refuse.
“The investment of millions of dollars is something I can’t turn down,” he finally agreed, leaving the details to the professionals.
In just three days, the negotiation team reached an investment agreement.
Immediately after signing the agreement, Ryan transferred $3 million to Blue Sky Studios’ account to begin preparations for the first 3D experimental short film. The studio aimed to start making its first 3D animated feature by the end of next year.
Making a 3D animated feature usually takes three to five years. However, since this was Blue Sky Studios’ first animated feature, and a 3D one at that, it might take longer.
In the past, it took Blue Sky Studios eight years to make its first experimental short film due to a lack of funds. Once they partnered with 20th Century Fox, it only took three years to produce “Ice Age.”
In distant Port Richmond, California, John Lasseter at Pixar hung up the phone and sighed, “Pixar is going to face a formidable competitor in the future.”
No one understood Chris Wedge’s ambition better than him. With sufficient funds, Chris Wedge would undoubtedly make a 3D animated feature.
Fortunately, given Blue Sky Studios’ technical reserves, they wouldn’t pose a significant competition to Pixar for a long time.
In comparison, Disney’s hand-drawn animation and that damn cooperation agreement were the biggest shackles for Pixar.