Source: The Hollywood Reporter
The Hollywood Reporter says that Walt Disney Pictures and Walden Media have confirmed that for budgetary and logistical reasons the Burbank-based studio is not exercising its option to co-produce and co-finance The Chronicles of Narnia: The Voyage of the Dawn Treader with Walden.
The third installment in the Narnia series was in preproduction; set for a spring shoot and a planned May 2010 release. The development also puts the participation of the talent attached in doubt, adds the trade. Michael Apted was on board to direct the script by Steven Knight. The key players of the second installment, "Prince Caspian" -- Ben Barnes, Georgie Henley, William Moseley and Anna Popplewell -- were set to return for the third film.
Walden has a strong relationship with the Lewis estate and will shop "Treader" in hopes of finding a new partner. The most likely candidate at this stage is Fox, which markets and distributes Walden fare under the Fox Walden banner.
Any partnership on a "Narnia" movie will require a substantial investment. "Caspian," which filmed in the Czech Republic, Mexico and New Zealand, cost $200 million. The first film, "The Lion, the Witch and the Wardrobe," was shot mostly in New Zealand for $180 million.