Oz the Great and Powerful hasn’t even been out a day, yet Disney already has lined up Mitchell Kapner to work on a sequel’s script. Kapner was a co-writer for Oz the Great and Powerful, along with David Lindsay-Abaire.
Oz has been billed as sort of a prequel to the iconic 1939 film, The Wizard of Oz, so any sequel may attempt to draw in even more back-story from that film. Unfortunately for Disney, Warner Brothers still owns the rights to The Wizard of Oz, so anything that originated in that film (e.g. the ruby slippers) is off limits.
On the bright side, the novel on which the movies are based, The Wonderful Wizard of Oz, along with all of the other Oz stories by Frank L. Baum have passed into public domain, so the ideas and images from those are fair game.
Disney would like to get the sequel out relatively quickly as they are hoping that Oz will net similar results to their other recent re-imagining of a classic, Tim Burton’s Alice in Wonderland, which netted over a billion dollars worldwide. They will hope to avoid the fate of other fantasy re-imaginings which have been flopping this year, such as Jack the Giant Slayer.