Circle 7 Animation

Circle 7 Animation (or Disney Circle 7 Animation) was a short-lived division of Walt Disney Feature Animation specializing in computer generated imagery (CGI) animation and was originally intended to create sequels to the Disney-owned Pixar properties, leading rivals and animators to derisively nickname the division "Pixaren't".

Why It Was Shut Down

 * 1) None of these Circle 7 scripts were used by Pixar.
 * 2) The studio didn't release any films during its lifetime.
 * 3) These three movies namely, Toy Story 3, Monsters, Inc. 2: Lost in Scaradise, and Finding Nemo 2 have been gone unused.

Result
These three films were permanently cancelled and end up being released with different scripts by Pixar, in 2010, 2013 and 2016, respectively.