I remember hearing that a few years ago. It does sort of sound like that. The script and subtitles say he's saying something like, "Good kitty. Take off and go." It doesn't really sound quite right though. It's sorta garbled like two different voices overlapping. Maybe an editing mistake.
I heard that Lion King sex star thing might have been done by the special effects team and it's meant to spell out "SFX", but I dunno. The Little Mermaid cover they say, was just an accidental coincidence and that the artist didn't realize it. That's hard to believe for me though. I mean how can you draw that with your own hand and never have it cross your mind that it might look a bit like a...
...
.
There are lots of Disney rumors flying around.
Snopes has looked into most of them. I love the one about the
lemmings. I guess PETA wasn't around back then.