According to the Hollywood Reporter, Disney is actively proceeding with a second sequel to Pixar’s “Toy Story,” a move that could further damage the relationship between the two companies. “Disney is in the process of setting up a digital animation facility in Glendale — not far from the digs of its bitter rival DreamWorks Animation — that will be used for the production of ‘Toy Story 3.’ While Disney has the rights to do sequels to ‘Toy Story,’ it has held off from doing so in the past, in part in deference to Pixar CEO Steve Jobs and executive VP John Lasseter, both of whom haven’t wanted to lose control of the characters.”