George Lucas Explains His Reasons for Selling Star Wars to Disney:“We Could See the Problems”
On October 30, 2012, George Lucas sold Lucasfilm, which included the Star Wars franchise, to The Walt Disney Company for approximately $4.05 billion. This deal stands as one of the largest entertainment acquisitions in history. Through this acquisition, Disney gained ownership of all existing Star Wars films, characters, and related intellectual property rights.
The sale also opened the door for Disney to create new Star Wars content, including movies, television series, theme park attractions, and merchandise.
Regardless of personal opinions on the sale, it’s undeniable that it ranks among the most renowned and profitable entertainment transactions in history. Now, nearly 12 years after the deal, George Lucas has revealed the simple reason behind his decision to sell Star Wars and retire: he recognized the impending threat of streaming and was uncertain about how to adapt to the changing landscape.
Streaming is really powerful, and it’s great, it’s really upped the movie business because the theatrical movie business… we could see the problems, and it was not good. So everybody was looking to save it, but nobody knew streaming would. And that’s when Netflix took off, and at that point, I said, ‘I don’t know what this is gonna be, there’s gonna be a giant transition in the business, I don’t know that much about it,’ and I sold the company, and I retired.
Lucas isn’t alone in recognizing the potential threat posed by streaming. Numerous executives, filmmakers, and actors have blamed various streaming services for the decline in movie profits. Despite soaring production budgets, box office returns haven’t matched expectations. The COVID-19 pandemic further disrupted the industry, and audiences have yet to return to theaters in pre-pandemic numbers.
Nonetheless, Lucas has previously expressed confidence that Disney is the only company capable of properly safeguarding Star Wars and continuing its legacy. In a recent interview, he mentioned his appreciation for the current direction of the franchise, praising the talent, innovative ideas, and high production values of recent projects.
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