The Ingenious Journey of George Lucas to Making Billions from ‘Star Wars’

George Lucas, the mastermind behind the iconic “Star Wars” franchise, took an extraordinary and unexpected path that led him to immense financial success.

What started as an underdog story turned into a global phenomenon that changed the world.

Back in 1977, Hollywood had little faith in “Star Wars” and expected it to be a major flop.

However, to everyone's surprise, it became one of the highest-grossing films of all time and launched a franchise that continues to thrive today.

The highly anticipated seventh film in the “Star Wars” saga, titled “The Force Awakens,” is set to be released on December 18, 2015.

Industry expectations for its success are incredibly high, with renowned filmmaker Steven Spielberg even predicting that it could be “the biggest movie ever.”

Although George Lucas relinquished control of the franchise in 2012, he still reaped significant profits from it.

This was not solely because he created the original story, but also because he secured the rights to licensing and merchandising before the release of the first film, “A New Hope.”

This strategic move ultimately propelled Lucas to become one of the most successful individuals in the entertainment industry.

Let's delve into the precise steps George Lucas took that transformed him into a billionaire.

In 1973, Lucas had just finished directing the beloved coming-of-age film “American Graffiti.”

This high school comedy, made on a budget of $777,000, ended up earning a staggering $140 million in revenue, solidifying Lucas' reputation in Hollywood and attracting the attention of producers eager to hear his next idea.

Lucas wanted to direct a sci-fi Western called “Star Wars,” but at the time, the genre was not taken seriously by studios due to numerous previous failures.

Despite facing rejection from many, Lucas found support from Alan Ladd Jr. at 20th Century Fox.

Early buzz surrounding “Star Wars” was positive, with even Spielberg recognizing its potential for success.

When “A New Hope” was released on May 25, 1977, it surpassed all expectations by grossing $775.4 million worldwide.

However, it was a decision made before the film's release that truly made Lucas wealthy.

Convinced that “Star Wars” would fail, 20th Century Fox allowed Lucas to forego an additional $500,000 in directing fees in exchange for retaining licensing and merchandising rights.

While this was a fortunate outcome for Lucas, it proved detrimental for the studio.

In 1978, over 40 million “Star Wars” action figures flew off the shelves, generating more than $100 million in sales.

Even in 2011, without any new “Star Wars” movies, the franchise's toys brought in over $3 billion.

While Lucas faced criticism from some “Star Wars” fans due to the divisive prequels he directed, he remained firmly in control of Lucasfilm.

In 2012, Disney acquired Lucasfilm for an astounding $4.05 billion, making Lucas an incredibly wealthy man.

His net worth now stands at $5.3 billion.

Disney, like Lucasfilm, excels in merchandising and licensing.

The massive success of films like “Frozen,” which earned $1.3 billion worldwide, can be attributed, in part, to its strong merchandising value, boosting both Disney's earnings and total toy sales.

With the release of “Star Wars: Episode VII – The Force Awakens” on the horizon, anticipation is at an all-time high.

Many predict that it will break records and become one of the biggest movies of all time.

Action figures of new characters are already flying off the shelves ahead of the film's premiere.

Although Lucas had no involvement in “The Force Awakens,” it is undeniable that his contributions played a significant role in the franchise's enduring success.

Despite not having seen the film, Lucas acknowledges that it will be an important moment and a conscious decision to enjoy it, even though it may evoke mixed emotions.

George Lucas took a path filled with unexpected turns and savvy business decisions, turning “Star Wars” into a billion-dollar empire.

His journey serves as a testament to the power of creativity, persistence, and the ability to seize opportunities when they arise.