In 2004, Disney Circle 7 Animation was formed as a CG animation studio to create sequels to the Disney-owned Pixar properties, and the studio began to hire staff shortly after. It was seen as a bargaining chip by people within Pixar and Disney, but also as a backup plan by Eisner in the event that negotiations fell through. The first (and only) projects that the studio worked on were early drafts of Toy Story 3, Monsters, Inc. 2: Lost in Scaradise, and Finding Nemo 2.