Citing budget and logistics problems, Disney said Tuesday it will not co-produce and co-finance the next "Narnia" installment with producer Walden Media. "The Chronicles of Narnia: The Voyage of the Dawn Treader," the third entry in the series based on the books by C.S. Lewis, was in preproduction with plans to shoot in spring and release in May 2010. The decision means that the participation of director Michael Apted and the key players from the second film is now in question. Disney had high hopes for the "Narnia" franchise, but after a successful debut at $745 million worldwide, the series was on a downward spiral, with the second film pulling in $419 million. It is likely that Fox may now pick up the film and distribute the Walden flick under a Fox Walder banner, said The Hollywood Reporter.