A recent Animated News article on the rumored cancellation of The Little Mermaid III has sparked debate amongst readers and a handful of e-mails supporting a counter-claim. One e-mail in particular notes that Ultimate Disney features a recent screen shot of the bonus features menu from the forth coming Little Mermaid platinum edition DVD which includes a “Musical Sneak Peek” of The Little Mermaid III. Meanwhile, the forums at the same site point to an article published in a recent edition of Video Business Magazine (note: article not currently available on-line). The interesting blurb suggests that the new movie will be a prequel to the original and provides an interesting quote from DisneyToon president, Sheron Morrill stating that the division is getting out of the sequel business and into developing new franchises for Disney’s pre-established characters. “We knew we couldn’t do sequels forever. I also knew we didn’t want to be in the business of doing the fours and fives.” Such a statement from an executive at this level also questions the validity of another rumor regarding the closing of DisneyToon Studios altogether.