Background
In 1988, Pixar witnessed an unprecedented success with its third short film, Tin Toy, which won the Academy Award for Best Animated Short Film. The short was the first computer-animated film to claim the award, representing an important milestone in the history of the relatively new medium. It was also the first win for the hardware company, which was still struggling to sell its main product: the Pixar Image Computer. The key animator and director behind Tin Toy, John Lasseter, had once worked at Disney several years prior but was fired by unknowingly stepping on his superiors' toes with his support for computer animation. Now, Disney took notice of the Oscar win for Tin Toy and began a campaign to win Lasseter back.
Lasseter turned the studio's offer for a directorial position down, remarking to Pixar co-founder Ed Catmull, "I can go to Disney and be a director, or I can stay here and make history." Jeffrey Katzenberg, the head of Walt Disney Studios, had a reputation for being difficult and controlling. In contrast, Lasseter received complete creative freedom at Pixar's small animation division and was highly respected by his colleagues. In addition to capturing Disney's interest, Pixar owner Steve Jobs invigorated his interest in the animation group, and he approved production of another short.
Read more about this topic: Knick Knack
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