To audiences all around the world, Pixar and Disney have always gone hand in hand. It feels like there has never been one without the other. Though it has been that way for a long time, there was a period of time when Pixar was still it’s own independent company under Steve Jobs. This was a big obstacle for the Walt Disney Company, as they wanted to keep the studio names synonomous with each other. Thus, Circle 7 Animation was born. But first, let’s discuss some of Pixar’s background.

Pixar and Disney Team Up

In the 1990s, Pixar’s business venture to sell their computers was not doing so well. So, in 1991, Pixar signed with Disney to do a 3-movie deal. Though the initial deal was just 3 movies to see how audiences would respond to the all-new computer animation style, it was quickly extended to a 10-year, 5-movie deal after the success of Toy Story in 1995. These movies included A Bug’s Life, Toy Story 2, Monsters Inc., and Finding Nemo. Though the 2 studios continued to work together for the coming years, there was a period of time when they were not on good terms.

Circle 7 Animation is Created

From 1984 to 2005, Michael Eisner was the CEO of the Walt Disney Company. Eisner was heavily involved with the Pixar films, but he did have a falling out with Steve Jobs in 2004. The two CEOs had opposing personalities and plans for their future together as partners. Eisner felt that Pixar was asking for too much, but he was undermining the work of Pixar too. Instead of working together as equal partners, Pixar felt like they were being treated as staff to Disney. Eisner also did not want to include sequels into their 5-movie deal, though that wasn’t fair to Pixar. This lead to an unfortunate split between the studios. However, although Disney had not bought Pixar yet, they did own the rights to all Pixar property. Eisner figured he would open his own animation studio to produce direct-to-video sequels of the Pixar movies that were already out. The studio was called Circle 7 Animation and opened on March 16th, 2005.

Circle 7 Animation logo. Image from: https://www.buy9586.top/products.aspx?cid=28&cname=toy%2bstory%2b3%2bcircle%2b7

Direct-To-Video Circle 7 Sequels

The studio hired animators, artists and staff to start the work on 3 sequels that included Pixar’s already-established characters. These movies would be Toy Story 3, Monsters Inc. 2: Lost in Scaradise, and Finding Nemo 2. There were several Pixar staff and general public who had various differing opinions about Circle 7. Majority of them believed no films would really come out of it, and it was just a way for Disney to hold something over Pixar’s head. The studio only got as far as script pitches and drafts, and no films were ever made or begun.

Toy Story III

The first sequel of them all was to be Toy Story 3. The staff at Pixar, including Toy Story director John Lasseter, was very distraught over this film as the characters were held close to all of their hearts.

The plot was going to be centered around Buzz. It was going to have the same adventurous feel as the first and second films did, with Woody and the gang taking a trip to Taiwan to save Buzz after he is shipped off to get fixed. The toys find out the Buzz Lightyear toy is being fully recalled all around the world, and they need to save their friend from being destroyed. The only known added character is Jade, another toy scheduled to be destroyed.

Concept art for Toy Story III by Jim Martin. Image from: https://laughingsquid.com/concept-art-from-the-circle-7-animation-version-of-toy-story-3/

When creating the Toy Story 3 the world saw in 2010, the Pixar writers did not read the original Circle 7 script at all. As director Lee Unkrich says,

“We didn’t read their script. Not out of spite, but we wanted to start fresh, and not be influenced by what they’d done. We didn’t look at any of the work they’d done. We really didn’t want to know anything about it.”

— Lee Unkrich

Monsters Inc. 2: Lost in Scaradise

The next film on the studios roster was a sequel to Monsters Inc., since the original was such a roaring (pun intended) success. Over the last 2 decades we’ve gotten a prequel to Monsters Inc, several shorts, and in 2021 a new Disney+ series based on the characters in the film. But the one thing we never got was a sequel, and this one would have been perfect. It was written by Rob Muir and Bob Hilgenberg.

The film would start off with the days leading up to a wedding between Mike and Celia. Sulley is personally struggling with all of the changes his life had been through in the past year. Mike suggests that Sulley go to visit Boo for her birthday. When entering through the closet door, they find a snoring old lady in Boo’s bed. They find out Boo and her family have moved, and they make their way through the human world to find her again. They have encounters with new and old characters, including Randall. They eventually make it to Boo’s new house, but Sulley leaves devastated after seeing that Boo, now 7, no longer believes in monsters. With the help of Boo’s younger brother who does believe in monsters, they’re able to get Boo’s attention again so they can leave the human world through her closet door. At the end of the film, Sulley and Mike make their way back to Boo one last time to tuck her into bed.

Concept art for Monsters Inc 2. Image from: https://twitter.com/artoflostandcan/status/1134502774153076736

Concept art for Monsters Inc 2. Image from: https://twitter.com/ArtofLostandCan/status/1134502793857949697/photo/2

The antagonist of the film was going to be a monster-obsessed human, who was dedicating his life to proving that monsters are real. He does get into the Monster World and steals Celia, but after a major scare from Sulley at the end, he is banished to the Himalayas.

“If Sulley moved up to the management, then he’s not visiting Boo as much and that becomes something that he really misses.”

— Rob Muir

Finding Nemo 2

The last film the studio had planned before it’s demise was Finding Nemo 2. It didn’t get past a draft of a script, so all we really know is the basic storyline written by Laurie Craig. The film was to be centered around finding Marlin now, after he is captured. Nemo and Dory travel across the ocean to find him, similarly to the first movie. The newest addition to it was a long-lost brother of Nemo’s named Remy. The 3 of them encounter other new characters along the way to save Marlin. This is all we know about this film, as no other work was done for it other than the script.

Circle 7 Animation is Closed

In the early 2000s when Pixar was on the come up, Disney was falling behind. Movies such as Home on the Range, The Jungle Book 2, and Treasure Planet were not fairing well with audiences. When Michael Eisner opened Circle 7 Animation with the hopes of reviving the parent company as a whole, he also announced he would be stepping down as CEO that same year. In 2006, Bob Iger stepped in as the CEO of the Walt Disney Company. He recognized the benefits of having a good relationship with Pixar, and he didn’t want the studios to be separated any longer.

“I thought the fastest way to accomplish that, albeit at the riskiest and the most expensive, was to buy Pixar.”

— Bob Iger

After a meeting with Steve Jobs to discuss whether it was a good idea or not, Bob felt inspired by Job’s work ethic and commitment to his companies. Iger knew it would not be a small feat to convince the board of directors at Pixar, but Jobs agreed that it would benefit both companies in the end.

Bob Iger bought Pixar for $7.4 billion in January 2006. Steve Jobs became the largest shareholder for the whole company. Pixar President Ed Catmull and Executive Vice President John Lasseter would be transferred over into the leading team and management for the new combined studio. Majority of the workers at Circle 7 were also transferred over to become Pixar employees.

Due to the circumstances and the fact that Eisner had resigned, Circle 7 Animation was closed on May 26th, 2006. None of the projects were ever released beyond the drafts of scripts and some concept art. The scripts were also not considered for some of the sequels (Toy Story 3 and Finding Dory) we see today.