Movies News Talk
According to the most recent estimations, George Lucas is the richest celebrity on Earth. Forbes claims that his Net Worth right now is shockingly $5.5 billion. Given his narrative starts with a desire of just creating a Flash Gordon movie and the concept developed into one of the most popular Hollywood franchises of all time, it's an amazing feat. Still, Lucas's best success came from a savvy businessman rather than from a director, for all that is the case.
Lucas retired recently, and in a recent interview at Cannes he said he sold Lucasfilm to Disney back in 2012 since he felt he wasn't prepared for what became the age of streaming and that the film Business was changing. He has mainly stayed out of the public since then, only lately coming to attention after receiving the Honorary Palme d'Or at the 77th Cannes Film Festival. But how much is this now-retired living legend worth, and how did he transform the films into something so lucrative?
It would be oversimplified to say 20th Century Fox felt it would be a hit; it was considered as a vanity project, something to clear the path so the studio could work with Lucas on other projects. Over forty studios first turned Lucas down on Star Wars. Lucas bargained for a contract whereby he would keep all sequel and merchandise rights in return for a pay cut from $500,000 to $150,000. When the first Star Wars film turned out to be an incredible hit, even Lucas couldn't fathom how crucial this became.
Lucas struck a contract with Kenner ahead of Star Wars' 1977 premiere whereby he received just five cents for every dollar of toys sold. Kenner missed demand and was as wrong-footed as Fox when Star Wars burst at the box office. Once the item entered the market, the maker had to sell a "Early Bird Certificate Package" that could be redeemed for toys. Star Wars sold toys worth a startling $100 million between 1977 and 1978.
George Lucas sold Lucasfilms to Disney for $4.05 billion in 2012. At the time, CEO Bob Iger was on something of a buying frenzy, acquiring big-brand companies like Pixar and Marvel thereby enhancing Disney's influence on popular culture. Wanting something like what Lucas described as "the Pixar deal," he first overstated the value of his company. Bob Iger turned down that offer, giving significantly less since he thought Star Wars would need for more effort. As he detailed in his autobiography The Ride of a Lifetime:
Lucas tried to raise the value by penning scripts for a Star Wars sequel trilogy—which Disney finally passed on. He selected Kathleen Kennedy as his successor, but finally withdrew to let Disney administration of his legacy go forward. He did this as a real Hollywood icon, a success story driven more by his ability as a filmmaker than by his commercial acumen.
Although the Star Wars series is the second most grossing in movie history, how do all 12 films rank among themselves when inflation-adjusted?
A New Hope Box Office Show:
Original Box Office Return Original Box Office Return Modified for Inflation BudgetL lifetime Adjusted Box Office Return Lifetime Based On Inflation
$11 million ($307,263,857).1,583,525,890$775,398,507 $4,016,281,367
The Empire Strikes Back was far from a done deal, though, because now Hollywood knew what they were dealing with when George Lucas came calling. Lucas had retained the sequel rights because he expected Star Wars to fail and figured he'd have to shop around, but the phenomenal success of Star Wars meant negotiations were tough. Lucas provided half the budget himself and had to borrow the rest, facing more problems when the Battle of Hoth put the movie over-budget. But it paid off, with The Empire Strikes Back proving another hit - and merchandise sales pre-prepared this time.
The Empire Strikes Back Box Office Performance
Budget Original Box Office Return Original Box Office Return Adjusted For Inflation L lifetime Box Office Return Lifetime Box Office Return Adjusted For Inflation
$18 million $209,398,025 $793,709,999 $538,375,067 $2,040,676,716
Not only was the future of Star Wars secured, George Lucas had successfully turned his filmmaking dream into something incredibly profitable. He'd later negotiate the merchandise contracts when Hasbro took over from Kenner, with the new deal working more in his favor. Star Wars would remain one of the most profitable brands in the world... right up until the moment he sold it.