The Chronicles of Narnia

Citing "budgetary considerations and other logistics," Walt Disney Co. has pulled out of its partnership with Walden Media to finance further entries in the Chronicles of Narnia film franchise.

Although the series' debut, The Lion, the Witch and the Wardrobe, grossed nearly $750 million worldwide, its follow-up (Prince Caspian) netted just $419 million against a production budget of $200 mil - promotional costs not included. Other Walden Media productions such as Nim's Island and Mr. Magorium's Wonder Emporium have delivered similarly disappointing numbers, though this summer's Journey to the Center of the Earth (starring Brendan Fraser) was considered a success.

A spokesperson for Walden tells the Wall Street Journal that the company remains committed to the Narnia franchise. Production on a third film, The Voyage of the Dawn Treader, was scheduled to commence in early 2009 with an eye on a May 2010 release, but that timetable could now change.