In 90s, Disney Created Its 'Worst Enemy'. It Fired A Man Who's Now Worth $3.8 Billion | Meet Jeffrey Katzenberg
Disney and its rival, DreamWorks Studios, have made some of the most cherished animated films of our times. This includes The Lion King, Shrek, Madagascar, and Kung Fu Panda.
Animated movies are a vital part of the film industry, often topping the box office and serving as a reflection of contemporary society. Regardless of age, almost everyone enjoys watching animated films. Walt Disney and DreamWorks are well-known names in the animation and entertainment sector. Did you know they have a long history of rivalry? And how did it begin?
In a post on X (formerly Twitter), Tim Carden, the Co-Founder of ThoughtleadrX explained how Disney created its worst enemy – DreamWorks. He also shared a few videos explaining his post.
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“In 1994, Disney created their worst enemy. They fired the man who made them BILLIONS… Then watched him build Disney’s biggest rival. That rival is now worth $3.8B and created Shrek, Madagascar, and Kung Fu Panda. Here’s how this decision is coming back to haunt Disney today," he posted on X.
In 1994, Disney created their worst enemy.They fired the man who made them BILLIONS…
Then watched him build Disney's biggest rival.
That rival is now worth $3.8B and created Shrek, Madagascar & Kung Fu Panda.
Here's how this decision is coming back to haunt Disney today: pic.twitter.com/5UwgfckT0T
— Tim Carden (@timjcarden) April 3, 2025
Jeffrey Katzenberg, the head of Disney’s studio, began producing hits in the 1990s. Beauty and the Beast, released in 1991 ($440 million), Aladdin ($504 million) in 1992, and The Lion King (1994) made $968 million. Disney animation flourished under Katzenberg.
In the 90s, Disney's studio chief Jeffrey Katzenberg was churning out hits.1991: Beauty and the Beast ($440 million)1992: Aladdin ($504 million)1994: The Lion King ($968 million)
Under Katzenberg, Disney animation soared.
Everything was going well until: pic.twitter.com/Sky7AaCYwg
— Tim Carden (@timjcarden) April 3, 2025
Everything was going well until Katzenberg demanded that his efforts be given credit. He requested $250 million in royalties from his original hits. However, Michael Eisner, the CEO of Disney, refused. Katzenberg didn’t waste time after being fired. He was also afraid of setting a precedent in the entertainment industry.
Katzenberg wanted credit for his work:He asked for $250 million in royalties from the hits he had created.
But Disney's CEO Michael Eisner said no. He feared a precedent.
Katzenberg was fired — but he didn't waste time… pic.twitter.com/4CLgWrKIX2
— Tim Carden (@timjcarden) April 3, 2025
He founded DreamWorks SKG alongside Steven Spielberg and David Geffen, who signed Nirvana, a rock band. After this, Disney wasn’t prepared for what was coming next.
He joined forces with Steven Spielberg and David Geffen (the man who signed Nirvana) to launch DreamWorks SKG.Disney wasn't ready for what was next: pic.twitter.com/6Ovg7lxxcB
— Tim Carden (@timjcarden) April 3, 2025
Everything Disney was known for, including fairy tales, musical numbers, and idealised heroes, was parodied in Shrek in 2001. It was sarcastic, crudely humorous, and had a princess who changed into an ogre, flipping the script. Shrek made $488 million with his daring storytelling twist.
In 2001, Shrek mocked everything Disney was known for—fairy tales, musical numbers, and idealized heroes.It flipped the script with sarcasm, crude humor, and a princess who turned into an ogre.
Shrek’s bold spin on storytelling struck gold, raking in $488 million.
DreamWorks… pic.twitter.com/TwtCjIs6DR
— Tim Carden (@timjcarden) April 3, 2025
DreamWorks didn’t stop there; it kept transforming stories. How to Train Your Dragon, which debuted a quiet, slender outsider as the protagonist in 2010, brought in $494 million at the box office. The outcomes were astonishing, and they kept up their pace.
DreamWorks continued to reshape narratives.In 2010, How to Train Your Dragon introduced a quiet, skinny outsider as the lead and it earned them $494 million at the box office.
Their pace continued, and the results were astounding: pic.twitter.com/PAbJ5uurff
— Tim Carden (@timjcarden) April 3, 2025
DreamWorks’ animated library was valued at $3.8 billion in 2016. After selling DreamWorks, Katzenberg became a multi-billionaire. In the meantime, during the last four years, Disney’s stock had decreased by 40 per cent. Katzenberg prevailed because of his superior understanding of one thing: audiences might be enthralled and moved by genuine stories.
By 2016, DreamWorks’ animated library reached $3.8 billion in value.Katzenberg sold DreamWorks and walked away a billionaire.
Meanwhile, Disney's stock has dropped 40% over the past four years.
Katzenberg won because he understood one thing better than anyone else: pic.twitter.com/skTy2yt2QA
— Tim Carden (@timjcarden) April 3, 2025
More than just amusing, Katzenberg’s stories struck a deep chord with audiences and drew them back again and time again. Outside of Hollywood, the same idea holds!
Authentic narratives can captivate audiences and create emotional connections.Katzenberg's stories did more than entertain — they resonated deeply with viewers and kept them returning for more.
The same principle applies outside of Hollywood:
— Tim Carden (@timjcarden) April 3, 2025
Through this story, Tim Carden, the Co-Founder of ThoughtleadrX explained how successful companies provide a vision that audiences can support in addition to selling goods. How? by using genuine storytelling to establish enduring relationships with viewers online.
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