According to SFGate.com, Pixar CEO Steve Jobs recently talked with analysts about what led to their break with Disney.

Jobs said he offered Disney better terms than he knew he could get from a rival studio during their negotiations, but said Disney balked at allowing Pixar to fold the last two movies due under the current deal into a new agreement with more favorable terms for Pixar… Jobs said every major studio has expressed interest in working with Pixar. Negotiations with at least four of them will begin in March and Pixar hopes to have a new deal in place by the fall. “Honestly, we’re sad about it”, Jobs said about the breakdown of talks with Disney. “I’m confident… Pixar’s golden age will continue to evolve without missing a beat”.

Jobs went on to give his personal assessment of Disney.

“The truth is there has been little creative collaboration with Disney for years”, Jobs said. “You can compare the creative quality (of Pixar films) with the creative quality of Disney’s last three films and judge each company’s creative ability yourselves”… Jobs criticized Disney’s last two animated efforts, this year’s Brother Bear and last year’s Treasure Planet, as ‘flops’. “No amount of marketing will turn a dud into a hit”, Jobs said.

On the subject of sequels Jobs was just as blunt.

Jobs said it is unlikely Pixar would ever agree to make a sequel of the five films co-produced by Disney and said he would not want to see Disney exercise its right to make sequels on its own. “We feel sick about Disney doing sequels”, Jobs said. “If you look at the quality of their sequels, such as Lion King 1 1/2 and (the Peter Pan sequel Return to Neverland), it’s pretty embarrassing”.

A Disney spokesperson responded. “It is unfortunate that Steve Jobs has grossly mischaracterized good faith negotiations to reach agreement on an extension of the present, successful partnership that has been beneficial to shareholders of both Pixar and Disney. It’s also sad and unfortunate that he has resorted to insults and name-calling in the wake of the disagreement. We expected better of him”.