Untitled Adventures Elmo in Grouchland sequel

The Adventures of Elmo in Grouchland 2 was the planned sequel to the 1999 film The Adventures of Elmo in Grouchland.

Plot
The plot was supposed to take place after the events of the first Elmo in Grouchland movie.

Why it is Cancelled

 * 1) Elmo in Grouchland bombed at the box office, despite positive reviews.

Results

 * 1) The sequel was permanently cancelled.
 * 2) The first film is standalone.
 * 3) Warner Brothers and The Jim Henson Company were in negotiations of developing a third Sesame Street film, which is in the works.