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In 1927, because of cost and technical restrictions, Disney and his chief animator Ub Iwerks decided to end their work on the Alice Comedies series in search of new creative opportunities.

Coincidentally, Universal Studios wanted to get into the cartoon business and needed a cartoon character of their own.

So Disney's distributor Charles Mintz told Disney and Iwerks to create a new character they could sell to Universal.

Wanting to make cartoons with an all-animated look, Disney signed a contract with Universal Studios leading to the creation of Oswald the Lucky Rabbit and Universal's first cartoon series.