2. Splitsville?

Trouble had been brewing between the Disney honchos and Pixar’s top executives for a while, and the Toy Story 2 issue didn’t help matters.

With Pixar’s movies proving hugely successful – and profitable – the company wanted more control over its own destiny and its movies. Disney, worried about losing what had quickly become its most lucrative division, was equally concerned that it keep a tight grip.

The two companies attempted to reach a new agreement in early 2004.

The new deal would be only for distribution, as Pixar intended to control production and own the resulting film properties themselves. The company also wanted to finance their films on their own and collect 100 percent of the profits, paying Disney only the 10-15 percent distribution fee.

More importantly, as part of any distribution agreement with Disney, Pixar demanded control over films already in production under their old agreement, including The Incredibles and Cars. Disney considered these conditions unacceptable, but Pixar would not concede.

While the two eventually worked out a deal – essentially, Disney acquired Pixar, but Lasseter took over running Disney animation and a couple of other departments, while Pixar corporate guru Steve Jobs joined the Disney – there was still the small matter of the original contract.

The Mouse House still held the rights to Pixar’s earlier work. And since by now every single one of Pixar’s films had proved to be a big hit, the then-head of the Burbank-based studio decided to capitalise even as it looked like his company and Pixar would be going their separate ways.

Michael Eisner, who hadn’t exactly endeared himself to Jobs and Lasseter with his attitude decided that what was really needed was Toy Story 3. Lasseter had had a rough idea for where a second sequel might go, but didn’t want to work on it, since he and his fellow Pixar-ians were more interested in original films.

Steve Jobs made it clear that the only way Toy Story 3 would be made would be to help Pixar ease out of its deal with Eisner’s bunch that much more quickly. And no one was going to force them.

"Pixar has no current plans to create Toy Story 3 and is under no obligation to do so," a spokesbod for the company had said years before it ever became an issue.

"Under the current deal, John picks his own projects, and no one insists on what he should do. With more than $250 million in cash in the bank and no debt, Pixar has the financial resources to finance and market its own films.

“Given Pixar's track record, several studios would likely be willing to finance everything in exchange for a chance to work with Pixar."
 
But with the pesky rights held still in Disney’s white-gloved clutches, it wasn’t truly their decision.

Toy Story 3 was announced. No, make that Toy Story 3… and 4.

Cue the dramatic musical sting!

Next: Toy Story 3. And 4…