George Lucas’ Brilliant Decision from Original Star Wars Earns Him $10 Billion

In a remarkable turn of events almost half a century ago, George Lucas made a decision that would ultimately lead to him earning billions of dollars from what many considered to be the biggest risk of his career.

Back in 1976, before the world had even heard of Star Wars, George Lucas was determined to bring his groundbreaking movie to life.

Despite skepticism from many, he made a deal that would prove to be a stroke of genius.

Under this agreement, Lucas would receive $165,000 for the development, scripting, and directing of Star Wars.

Additionally, he would be entitled to 40 percent of the film's net profits.

While this may not sound like a bad deal, it is important to note that Lucas had invested $400,000 of his own money into the production of Star Wars.

Furthermore, there was a clause in the agreement that allowed the studio, Fox, to cancel the project at any time.

However, due to Lucas funding a substantial portion of the pre-production himself, he had the option to take Star Wars elsewhere if Fox decided to pull out.

This turned out to be a stroke of genius on his part.

Rather than renegotiating his contract for more money or a larger share of the profits, Lucas focused on securing control over the film, its sequels, and ancillary rights.

This decision would prove to be instrumental in his long-term success.

It is well-known that Lucas retained the merchandising rights to Star Wars, not because he anticipated its financial potential, but because he wanted to maintain creative control over his vision.

This decision initially seemed peculiar, but it ultimately allowed Lucas to build a franchise worth billions of dollars.

Lucas believed that while people would pay to see the Star Wars movies in theaters, they would also spend significant amounts on toys, games, and other merchandise related to the franchise.

By securing the merchandising rights, Lucas ensured that he would benefit from these additional revenue streams.

The impact of this deal extended beyond just the success of Star Wars.

When the time came for Lucas to sell the franchise to Disney, he earned even more money—an impressive display of his business acumen.

Initially, it was reported that Lucas received a substantial $4 billion from the sale.

However, according to a recent blog post from Disney's InsideTheMagic.net, the true value of the deal is closer to $10 billion.

This increase in value is due to Lucas accepting a combination of cash and stock as payment, with the stock's value quadrupling since the transaction took place.

At the time, Lucas received 55 percent of the payment in cash and 45 percent in Disney stock, amounting to approximately $2.21 billion in cash and 37,076,679 shares in Disney.

During the deal, Disney stock was valued at $50 per share.

Now, however, the report states that Disney stock has risen to $200 per share.

If Lucas still holds his 37 million shares (equivalent to a 2.1 percent stake in the company), he would have accrued around $7.4 billion from the stock alone.

When combined with the cash he received initially, it becomes evident that Lucas made a substantial profit from this pivotal decision.

All in all, George Lucas' decision to