After a long bout of speculation early this year Pixar Animation decided to sever its relationship with Disney and either partner with a new studio or simply strike out on its own. This surprised few people as Pixar's magic has been the sole dose of quality in an otherwise unspectacular field of animation releases from Disney. From a negotiation standpoint this has left Pixar sitting pretty, but Disney may be trying to get a small dose of revenge.
Michael Eisner this past week confirmed that the House of Mouse is planing to release a series of sequels based on their past Pixar successes, sequels being something of a cash cow in recent years. With a new release looming on the horizon
Pixar CEO Steve Jobs was underwhelmed to hear of Disney's move.
"We feel sick about Disney doing sequels because if you look at the quality of their sequels ... it's been pretty embarrassing."
That may not be the only thing to cause the gritting of teeth. The arrangement stipulates that, despite having written the stories and created those characters, Pixar will only receive 8% of the royalties from any such title.