 Plans for a second Monsters , Inc. film existed since 2005 . Following disagreements between Disney CEO Michael Eisner and Pixar CEO Steve Jobs , Disney – which owned the rights to make sequels to all of Pixar 's films up to Cars – announced that a sequel to Monsters , Inc. would be made by Circle 7 Animation , which was also working on an early draft of Toy Story 3 . Titled Monsters , Inc . 2 : Lost in <unk> , the film would have focused on Mike and Sulley visiting the human world to give Boo a birthday present , only to find that she had moved . After getting trapped in the human world , Mike and Sulley split up after disagreeing on what to do . Screenwriters Rob Muir and Bob Hilgenberg were hired to write a script for the film , and storyboarded an early draft of it . Disney 's change of management in late 2005 – in which Eisner was replaced by Robert Iger – led to renewed negotiations with Pixar , and in early 2006 Disney announced it had purchased the studio . The Disney @-@ owned sequel rights were then transferred to Pixar , leading to the cancellation of Muir and Hilgenberg 's version of the film and the subsequent closure of Circle 7 . 
