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Pixar and Disney had disagreements after the production of . Originally intended as a straight-to-video release (and thus not part of Pixar's three-picture deal), the film was eventually upgraded to a theatrical release during production. Pixar demanded that the film then be counted toward the three-picture agreement, but Disney refused. Pixar's first five feature films have collectively grossed more than $2.5 billion, equivalent to the highest per-film average gross in the industry.

In preparation for potential fallout between Pixar and Disney, Jobs announced in late 2004 that Pixar would no longer release movies at the Disney-dictated November time frame, but during the more lucrative early summer months. This would also allow Pixar to release DVDs for their major releases during the Christmas shopping season. An added benefit of delaying was to extend the time frame remaining on the Pixar-Disney contract to see how things would play out between the two companies.

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    Disagreements between Steve Jobs and then Disney Chairman and CEO Michael Eisner made the negotiations more difficult than they otherwise might have been. They broke down completely in mid-2004, with Jobs declaring that Pixar was actively seeking partners other than Disney. Pixar did not enter negotiations with other distributors. After a lengthy hiatus, negotiations between the two companies resumed following the departure of Eisner from Disney in September 2005. In preparation for potential fallout between Pixar and Disney, Jobs announced in late 2004 that Pixar would no longer release movies at the Disney-dictated November time frame, but during the more lucrative early summer months. This would also allow Pixar to release DVDs for their major releases during the Christmas shopping season. An added benefit of delaying was to extend the time frame remaining on the Pixar-Disney contract to see how things would play out between the two companies.

    Pixar states that they believe that sequels should only be made if they can come up with a story as good as the original. Following the release of , Pixar and Disney had a gentlemen's agreement that Disney would not make any sequels without Pixar's involvement, despite their right to do so. In 2004, after Pixar announced they were unable to agree on a new deal, Disney announced that they would go ahead with sequels to Pixar's films with or without Pixar. was put into pre-production at the new CGI division of Walt Disney Feature Animation, Circle 7 Animation.