Walt Disney announced Tuesday it won't co-produce or co-finance "The Chronicles of Narnia: The Voyage of the Dawn Treader" with Walden Media.

According to the Hollywood Reporter, the studios didn't offer any details, but one of the main reasons for Disney's pullout is the lack of an appropriate budget.

The third installment of the series was already in preproduction, with principal photography scheduled to kick off next year and a release date set for 2010. Even most of the cast members already agreed to return.

The next step for Walden: look around and find a new partner to bring the film to the big screen. The trade says Fox is certainly a candidate at this stage.

"The Chronicles of Narnia: The Lion, The Witch and the Wardrobe" was produced on a budget of $180 million. The sequel, "Prince Caspian," cost $200 million to make.

As far as box office returns are concerned, "Lion" certainly scored better than "Caspian." The latter only pulled in $419 million worldwide, compared to the former's total gross of $745 million. Those numbers speak for themselves.