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Case 07/101920 – 1928
Fortune
Case SubjectWalt Disney

His first studio went bankrupt. He slept in the office and sold his camera for a train ticket

Bankrupt studio → $200,000,000,000+ company

The Setup

In 1922, a young Walt Disney founded Laugh-O-Gram Studio in Kansas City to produce short animated films. The studio landed a distribution deal but was never paid what it was owed, and by 1923 it had run out of money entirely.

The Turn

Too poor to afford an apartment, Disney reportedly slept on a couch in his own studio and bathed once a week at Kansas City's Union Station. He sold his camera to help fund a one-way train ticket to Hollywood, arriving with almost nothing. Years later, after building a new studio around a successful character called Oswald the Lucky Rabbit, Disney lost the legal rights to Oswald in a contract dispute with his distributor — along with most of the animation staff, who were poached at the same time.

Where It Left Him

Rather than fight for Oswald, Disney and his remaining team created a new character to replace him: Mickey Mouse, first released in 1928. That character became the foundation of an entertainment empire — The Walt Disney Company is valued today at well over $200 billion.

Walt DisneyVerified · Public record
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