The Baltimore Sun ran a great piece yesterday on the trials and tribulations of Oswald The Lucky Rabbit; including exactly how he ended up back in the Disney stable.
"It was really a low point in his career when he [Walt] lost Oswald," said
Dave Smith, archives director at the Walt Disney Co. "He thought, ‘Am I
going to be able to create a character as good as the one I just lost?’
Of course, he did come up with a character that surpassed Oswald in
every way, but Walt had no way of knowing that at the time."