 Disney , as the rights holder , had plans for a sequel to Monsters , Inc. since 2005 . Following disagreements with Pixar , Disney tasked its Circle 7 Animation unit to make the film . An early draft of the film was developed ; however , Disney 's purchase of Pixar in early 2006 led to the cancellation of Circle 7 's version of the film . A Pixar @-@ made sequel was confirmed in 2010 , and in 2011 , it was confirmed that the film would instead be a prequel titled Monsters University . 
