Disney calculates cost of losing John Lasseter to scandal

John Lasseter's decision to leave Pixar and Walt Disney Animation Studios for six months after complaints of inappropriate interactions with employees has stunned the animation community and raised questions about the fallout for Disney's signature animation business.

Lasseter, a Sonoma Valley resident, apologized to staff for unwanted hugs and any gestures that employees “felt crossed the line in any way, shape, or form,” adding that he looks forward “to working together again in the new year.”

Industry analysts and experts in the animation community said Lasseter's absence could be a significant blow to the studio if his departure becomes permanent because he has been such a key figure in its success. Lasseter is the chief creative officer of Pixar and Walt Disney Animation Studios.

Animation is a big box-office driver for Disney. Since Disney acquired Pixar for $7.4 billion in 2006, Pixar films have collected nearly $8 billion at the worldwide box office, according to ComScore. Disney Animation Studios movies, under Lasseter, have grossed $5.4 billion. “Frozen,” “Zootopia” and Pixar's “Finding Dory” each took in more than $1 billion in global revenue.

“This is the kind of thing that can really damage a company's culture,” said Doug Creutz, a media analyst at Cowen & Co. “The question is, does this affect their future output, and how does Pixar handle this permanently?”

The revelations about Lasseter came as a shock to many within the small, tight-knit animation community.

“The reaction was, ‘Wow.' Just, ‘Wow,'” said Dan Sarto, publisher of Animation World Network, an online animation resource. “It was really like being smacked in the face.”

Disney did not respond to requests for comment Wednesday.

It remains to be seen who will replace Lasseter, even temporarily. Lasseter became intimately involved with Disney's projects as soon as he arrived at the company in 2006.

“Those founder-type creative individuals are very hard to replace,” said Robin Diedrich, an analyst at Edward Jones. “I would say his contribution has been pretty instrumental in creating a creative environment, which is what you need at a studio or content company.”

While Lasseter's shoes would be hard to fill, animation analysts say there is a strong roster of respected internal candidates who could step into the job. They credit Lasseter and Ed Catmull, who is president of Pixar and Walt Disney Animation Studios, for fostering a deep bullpen of talented filmmakers who could succeed Lasseter.

Among possible contenders to fill Lasseter's seat are Pete Docter (“Inside Out”), Andrew Stanton (“Wall-E”) and Brad Bird (“The Incredibles”) - all of whom have directed successful Pixar movies. Another name mentioned in animation circles is Darla K. Anderson, a Pixar veteran who produced “Coco.”

“I think they're going to be OK because, unlike some other studios where you have a strong leader, John and Ed worked on cultivating a good team,” said Thomas Sito, a professor of animation at the University of Southern California and a prominent animation veteran who has worked at Disney and DreamWorks. “There's a lot of good people on the bench.”

The short-term effect on the company is expected to be minimal, analysts said. The studio released “Coco” Wednesday. The film was expected to gross roughly $60 million through Sunday, a decent result that experts doubt will be affected by the Lasseter controversy.

“If any creative studio can weather this type of unfortunate situation, it's a place like Pixar,” Sarto said.