Will lack of agreement alter releases?

'Toy Story' characters' fate hangs in the balance.
By TERRY LAWSON
KNIGHT RIDDER NEWSPAPERS
Last week in entertainment was a pretty overwhelming one for someone with the responsibility of staying on top of these things. For starters, we now have to embark on the search for the real killer of Bonny Lee Bakley.
And before we focus on the Michael Jackson trial, I must draw your attention to a development that could have a long-term impact: the future of Buzz, Woody, Nemo and Sulley.
It was announced last week that the new prince of the Magic Kingdom, Robert Iger, would attempt to repair the Walt Disney Co.'s relationship with Pixar, the animation company that has pretty much kept it from sinking in the red ink of "Atlantis," "Treasure Planet" and the other animated films Disney had been making in-house.
Pixar is the company that revolutionized animation with a string of smash hits for Disney, beginning in 1995 with the imaginative "Toy Story" and continuing through 2004's "The Incredibles," released last week on DVD.
The split
For reasons that remain murky, Pixar's guiding light John Lasseter and chairman/CEO Steve Jobs earlier announced plans to take their business elsewhere after next year, when their contract with Disney is fulfilled with the release of "Cars."
Now, while the rest of you were looking at the back of Hilary Swank's dress -- or more accurately, its lack of a back -- at last month's Oscars, my attention was drawn to the fact that Disney Studios chairman Dick Cook and Jobs were seated next to each other in the audience when "The Incredibles" won the Oscar for best animated film.
While Hollywood was buzzing last week with the idea that Pixar may reconsider in light of Eisner's dethroning, Disney let it be known that an animation department dramatically scaled down after the studio's cow comedy "Home on the Range" made a patty at the box office last year is developing "Toy Story 3."
Lasseter has always been averse to sequels, preferring that Pixar concentrate on original projects. But Pixar's Disney deal gives the Mouse rights to make sequels to the films Disney distributed -- with Pixar sharing in the profits. "Toy Story 2" was originally intended for direct-to-video, but Pixar stepped in to upgrade it for a successful theatrical release in part to protect its brand.
If Pixar leaves, Disney has let it be known that sequels will likely be forthcoming even if original voice talent like Tim Allen, Tom Hanks and Billy Crystal or any of the original creative teams (meaning Pixar's) are not involved.