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Dumbo 2 was supposed to be a direct to video sequel involving Dumbo and his friend Timothy the mouse getting separated with other circus animals and must find their way back. Disney even produced a "Sneak Peak" at the creation process on the big-top edition of the original Dumbo when it was re-released. When John Lasseter became Creative Director for Disney, he had put a stop to many Disney sequels that were in the works.
The reason Disney was creating direct to video sequels to the older films was to keep the original classics alive and give new generations a chance to enjoy them by creating sequels to them. Lasseter believed otherwise, he believed it was tarnishing the classics and put a stop to Dumbo 2 as well as the Aristo Cats 2 and the theatre bound Snow White 2. As of now Disney is focusing on only new material and big budget sequels such as Toy Story 3, cars 2 and Monsters inc 2.
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