DisneyToon Studios is a both animated features and live-action production company and a division of Walt Disney Animation Studios. It had produced primarily sequels to Disney animated features (The Lion King 1½, Lilo & Stitch 2: Stitch Has a Glitch), Pooh's Heffalump films (Pooh's Heffalump Movie, and Pooh's Heffalump Halloween Movie), and Mickey films (The Three Musketeers, Mickey's Twice Upon A Christmas).
DisneyToon Studios Australia (see also Walt Disney Animation Australia), formerly known as Disney Television Animation Australia, was a part of DisneyToon Studios based in Sydney, Australia. Originally one of several Disney television animation satellite studios, responsible for programs such as Goof Troop, Chip 'n Dale Rescue Rangers, and Bonkers, DisneyToon Studios was the main producer of the many Disney sequels and direct-to-video films (among them most of the above-mentioned films, along with the theatrically-released Return to Neverland, The Jungle Book 2, and Piglet's Big Movie). It was the last in-house Disney facility that produced traditional animation.
On July 25, 2005, Disney announced that it was closing DisneyToon Studios Australia in October 2006, after 17 years of existence. The closing was attributed to the rising costs of animation production in Australia. DisneyToon Studios planned to produce its animated films (both traditional and computer-generated) primarily through outsourcing in the future.
However, on February 23, 2006, due to new management brought on at Disney through the purchase of Pixar, all future films in production or due to go into production at DisneyToon which weren't connected to a Consumer Product Line were cancelled.
On June 22, 2007, management of DisneyToon Studios was turned over to the control of Ed Catmull and John Lasseter under the banner of the recently formed Walt Disney Animation Studios. The previous president of the division, Sharon Morill moved to a new position in the company. DisneyToon will no longer do any sequels to Disney classics, but will instead focus on spin-offs and original films