Summary
- George Lucas, born in 1944, directed 10 out of the 100 highest-grossing North American movies.
- Lucas negotiated smartly over film and sequel rights, making merchandising incredibly profitable.
- He sold Lucasfilm to Disney for $4.05 billion in a shrewd business move, recognizing the future of the industry.
Star Wars creator George Lucas is officially the richest celebrity in the world, but how did he turn that galaxy-spanning franchise into something so profitable? Born on May 14, 1944, legendary filmmaker George Lucas is best known for the Star Wars and Indiana Jones franchises. A Hollywood legend, Lucas directed or created a staggering ten of the 100 highest-grossing movies in the North American box office.
Lucas has now retired, and in a recent interview at Cannes he revealed this was partly because he recognized the film industry was evolving; feeling he wasn't suited for what became the age of streaming, he instead sold Lucasfilm to Disney back in 2012. Since then, he's largely kept out of the spotlight, only recently emerging when he was awarded the Honorary Palme d'Or at the 77th edition of the Cannes Film Festival. But how much is this now-retired living legend worth, and how did he turn the movies into something so profitable?
George Lucas Is The Richest Celebrity In The World
The latest estimates have revealed George Lucas is the richest celebrity in the world. According to Forbes, he now has a net worth of a staggering $5.5 billion. It's a staggering accomplishment, given his story begins with a dream of simply making a Flash Gordon movie, and the idea evolved into one of the most successful Hollywood franchises of all time. And yet, for all that's the case, Lucas' greatest success came not as a filmmaker but as a smart businessman.
George Lucas' Merchandising & Sequels Made Star Wars Incredibly Profitable For Him
Over 40 studios originally turned Lucas down on Star Wars, and it would be an exaggeration to say 20th Century Fox thought it would be a hit; it was seen as a vanity project, something to get out of the way so the studio could work with Lucas on other projects. Lucas negotiated a contract where, in return for a reduction of Lucas salary from $500,000 to $150,000, he would retain all sequel and merchandise rights. Even Lucas couldn't believe how important this became, when the first Star Wars movie proved to be a phenomenal success.
A New Hope Box Office Performance |
||||
|---|---|---|---|---|
Budget |
Original Box Office Return |
Original Box Office Return Adjusted For Inflation |
Lifetime Box Office Return |
Box Office Return Adjusted For Inflation |
$11 million |
$307,263,857 |
$1,583,635,890 |
$775,398,507 |
$4,016,281,367 |
All 12 Star Wars Movies Ranked By Box Office (Adjusted For Inflation)
The Star Wars franchise is the second highest-grossing in film history, but how do all 12 films rank among themselves when adjusted for inflation?
Ahead of Star Wars' release in 1977, Lucas negotiated a deal with Kenner in which he received only five cents for every dollar of toys sold. Kenner was as wrong-footed as Fox when Star Wars exploded in the box office, and was unable to meet demand. The toy manufacturer actually had to sell an "Early Bird Certificate Package" that could be redeemed for toys once they hit the shelves. Between 1977 and 1978, Star Wars sold a staggering $100 million worth of toys.
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 |
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.
George Lucas Sold Star Wars To Disney In 2012
In 2012, George Lucas sold Lucasfilm to Disney for $4.05 billion. CEO Bob Iger was on something of a buying spree at the time, increasing Disney's impact on popular culture by purchasing major brands such as Pixar and Marvel. Lucas initially overestimated the value of his company, wanting something similar to what he called "the Pixar deal." Bob Iger rejected that proposal, offering far less because he believed Star Wars would require more work. As he explained in his autobiography The Ride of a Lifetime:
"When we were pursuing Pixar, there were six movies already in varying stages of production, and a general sense of when they would be released. That meant they would generate revenue and profits quickly. Pixar also came with a big group of world-class engineers, seasoned directors, artists and writers, and a real production infrastructure. Lucas had many talented employees, particularly on the tech side, but no directors other than George, and no film development or production pipeline, as far as we knew."
Lucas attempted to bump up the value by writing scripts for a Star Wars sequel trilogy (which Disney ultimately ed on). He chose Kathleen Kennedy as his replacement, and ultimately stepped back to allow Disney management of his legacy going forward. He did so as a true Hollywood legend, a success story because of his skills as a businessman as much as because of his talents as a filmmaker.
