From The Lion King To Shrek, How A Fired Disney Executive Created One Of Its Biggest Competitors

Last Updated:April 05, 2025, 11:20 IST

Some of the most cherished animated films of our time have been made by DreamWorks Studios and Disney.

Animated movies are a vital part of the film industry, often topping the box office and serving as a reflection of contemporary society. Regardless of age, almost everyone enjoys watching animated films. Walt Disney and DreamWorks are well-known names in the animation and entertainment sector. Did you know they have a long history of rivalry? And how did it begin?

In a post on X (formerly Twitter), Tim Carden, the Co-Founder of ThoughtleadrX explained how Disney created its worst enemy – DreamWorks. He also shared a few videos explaining his post.

“In 1994, Disney created their worst enemy. They fired the man who made them BILLIONS… Then watched him build Disney’s biggest rival. That rival is now worth $3.8B and created Shrek, Madagascar, and Kung Fu Panda. Here’s how this decision is coming back to haunt Disney today,” he posted on X.

Jeffrey Katzenberg, the head of Disney’s studio, began producing hits in the 1990s. Beauty and the Beast, released in 1991 ($440 million), Aladdin ($504 million) in 1992, and The Lion King (1994) made $968 million. Disney animation flourished under Katzenberg.

Everything was going well until Katzenberg demanded that his efforts be given credit. He requested $250 million in royalties from his original hits. However, Michael Eisner, the CEO of Disney, refused. Katzenberg didn’t waste time after being fired. He was also afraid of setting a precedent in the entertainment industry.

He founded DreamWorks SKG alongside Steven Spielberg and David Geffen, who signed Nirvana, a rock band. After this, Disney wasn’t prepared for what was coming next.

Everything Disney was known for, including fairy tales, musical numbers, and idealised heroes, was parodied in Shrek in 2001. It was sarcastic, crudely humorous, and had a princess who changed into an ogre, flipping the script. Shrek made $488 million with his daring storytelling twist.

DreamWorks didn’t stop there; it kept transforming stories. How to Train Your Dragon, which debuted a quiet, slender outsider as the protagonist in 2010, brought in $494 million at the box office. The outcomes were astonishing, and they kept up their pace.

DreamWorks’ animated library was valued at $3.8 billion in 2016. After selling DreamWorks, Katzenberg became a multi-billionaire. In the meantime, during the last four years, Disney’s stock had decreased by 40 per cent. Katzenberg prevailed because of his superior understanding of one thing: audiences might be enthralled and moved by genuine stories.

More than just amusing, Katzenberg’s stories struck a deep chord with audiences and drew them back again and time again. Outside of Hollywood, the same idea holds!

Through this story, Tim Carden, the Co-Founder of ThoughtleadrX explained how successful companies provide a vision that audiences can support in addition to selling goods. How? by using genuine storytelling to establish enduring relationships with viewers online.