In the past 100 years, there’s been one big thing that Disney has been known for above anything else — animation.

There’s no doubt that the company excels in movie-making and creating stories that people can relate to. But things haven’t always been easy for Disney. In fact, around the turn of the millennium, it was Pixar that was having great success…and Disney was doing its best to capitalize on that.
Ever wondered if there were scrapped Disney or Pixar movies that never came to light? Well, a recent report from Collider shares some great behind-the-scenes history of a former Disney animation studio that never got to release a single film.

Back in 1999, Pixar released a very successful film, Toy Story 2. It should’ve been cause for celebration, but instead, it was a point of contention between the Pixar CEO Steve Jobs, and the Disney CEO Michael Eisner, who had very different ideas on how Pixar should be run. The two CEOs had begun negotiations on a new contract, but Disney wanted Pixar to continue making sequel films, while Pixar hoped to instead make more original movies.

Since they couldn’t reach an agreement, Eisner waited, assuring Disney shareholders that Pixar’s next original movie, Finding Nemo, would be a flop. However, the 2003 film performed well, and gave Pixar the assurance it needed to proceed with making new stories.

In response, Eisner developed a new strategy. The Disney CEO started a new animation studio called Circle 7 Animation (named for the street it was located on in Glendale) with the sole goal of creating sequels to the 7 Pixar films that Disney had the rights to. The new studio started by working on three films — Toy Story 3 (but not as we know it today!), Monsters Inc. 2: Lost In Scaradise, and Finding Nemo 2.

The Toy Story 3 production made it the furthest of the three films, with the plot centering around Buzz being sent back to the Tawainese factory he came from due to a recall. The other toys shipped themselves to Asia to rescue Buzz.

The Monsters, Inc. sequel would’ve involved Sulley and Mike going into the human world to find Boo. And Finding Nemo 2 featured Nemo’s long-lost brother, Remy, who survived the barracuda attack that had killed Nemo’s mom and his other siblings.

Ultimately, none of these films were ever released because Eisner was pushed to step down from his position as Disney CEO. In 2005, Bob Iger was named the new Disney CEO and his solution to the Pixar problem was to buy the company. He negotiated the terms with Steve Jobs and purchased Pixar in 2006 for $7.4 billion.

Nearly 20% of the Circle 7 Animation employees were let go, but Disney helped many of them find new jobs. The remaining employees were absorbed by Disney Animation. All in all, it was a very interesting and short-lived endeavor. Ultimately, the studio was nicknamed “Pixaren’t” by its rivals — the animation company that never got to release any films.

Keep following AllEars for more Disney history and fun facts that fans would love to know! We’ll keep you in the loop with the latest news as well.

Trending Now
Disney World has just revealed ticket prices for 2027!
There are new flower LEGO sets coming to ALDI tomorrow!
A brand-new theme park is about to attract guests from all over the world with...
This Disney World hotel perk is coming back next year.
Let's talk about this unnecessarily complicated ride rule at Magic Kingdom that Disney has yet...
You can't miss this LEGO sale at ALDI!
Disney just announced the opening date for Rock 'n' Roller Coaster Starring The Muppets!
Disney World has confirmed these hotel perks for 2027.
Disney just dropped HOW MANY new permits?!
Is this hidden breakfast meal at Disney World worth you pausing your rope drop morning...
The popular perk needs to be booked by the end of April.
The best Loungeflys for May.
Head over to Amazon and find your new favorite Disney Loungefly!
You can't miss these deals!
We have the full soundtrack for Rock 'n' Roller Coaster Starring The Muppets!
We just tried a limited-edition snack at Disney Springs, and you need to too!
If you’re dreaming of a Disney-themed birthday party but don’t know where to start, we...
Universal Orlando just announced FOUR big changes coming to CityWalk!
These essentials will change how you travel forever!
NEW Brooks tennis shoes are coming to the 2026 Disney World Springtime Surprise Weekend!