DisneyToon Studios to be Restructured

BURBANK, June 25: The Walt Disney Company is shifting away
from direct-to-DVD animated sequels like The Lion King 1½, announcing a shakeup at its DisneyToon Studios
(DTS).

The division produces sequels like The Lion King 1½ and Lilo & Stitch 2: Stitch Has a Glitch. According to published reports, Little
Mermaid III, currently in production, will
be the last direct-to-DVD animated sequel from the company. With the
restructure, DTS will now operate as a separate unit under the supervision of
Walt Disney Animation Studios. John Lasseter, the chief creative officer for
Walt Disney and Pixar Animation Studios, and Ed Catmull, the president of Walt
Disney and Pixar Animation Studios, will immediately assume responsibilities
for DTS. Sharon Morrill, a 15-year Disney veteran who has served as president
of DTS since 2004, will assume new duties within the studio.

DisneyToon Studios will now only produce original DVD
features, with the first being one about “Tinker Bell and a whole new cast of
Fairy characters that have all the ingredients of wonder, magic and enchantment
that our audiences expect,” Catmull said. “With DisneyToon Studios now part of
Walt Disney Animation Studios, we hope to explore a wide variety of fun and
original story ideas and projects."