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In 1935, Disney started to part out the Mickey Mouse Clubs, due to administration problems. The Cactus Kid was the final film to be animated by Ub Iwerks at Disney. Shortly earlier than the release of the film, Iwerks left to start his personal studio, bankrolled by Disney’s then-distributor Pat Powers. Powers and Disney had a falling out over cash due Disney from the distribution deal. It was in response to losing the proper to distribute Disney’s cartoons that Powers made the cope with Iwerks, who had long harbored a desire to move his own studio. The departure is considered a turning level in Mickey’s career, as nicely as that of Walt Disney.

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