After a few potential purchasers balked in the fall of 1985,
Catmull and his colleague Alvy Ray Smith decided to seek investors so that they could buy the division themselves.
So they called Jobs, arranged another meeting, and drove down to his Woodside house.
After railing for a while about the perfidies and idiocies of Sculley,
Jobs proposed that he buy their Lucasfilm division outright.
Catmull and Smith demurred: They wanted an investor, not a new owner.
But it soon became clear that there was a middle ground:
Jobs could buy a majority of the division and serve as chairman but allow Catmull and Smith to run it.
"I wanted to buy it because I was really into computer graphics," Jobs recalled.
"I realized they were way ahead of others in combining art and technology, which is what I've always been interested in."
He offered to pay Lucas $5 million plus invest another $5 million to capitalize the division as a stand-alone company.
That was far less than Lucas had been asking, but the timing was right. They decided to negotiate a deal.