Disney and Walden media have parted ways in the Chronicles of Narnia franchise citing budgetary and logistical reasons. Disney will not co-produce or co-finance the third Narnia film entitled, Chronicles of Narnia: The Voyage of Dawn Treader.

Walden is currently looking for another partner, with the most likely candidate being Fox, which already collaborates with Walden Media under the Fox Walden banner.

It is unusual for a studio to back out in the middle of a trilogy, but Narnia’s sales have dropped drastically since its opening in 2005 with The Lion, the Witch, and the Wardrobe. The Lion grossed $745 million worldwide and the sequel, Prince Caspian earned $419.6 million worldwide, a nearly 44 percent decline from the first to the sequel, with an 11 percent increase in the budgets.Walden Media must find a studio willing to put forth a substantial investment; Lion’s budget was $180 million and Caspian’s was $200 million.

The third installment based on the classic books by C.S. Lewis is slated for release in May 2010. 

—Jessica Delli Santi