My magic mouse just stopped working

My magic mouse just stopped working. I have rebooted the iMac and changed the batteries. Nothing is fixing it. What do I do next? When I turn the mouse on the green light on the bottom stays on for a few seconds and then flashes twice, pause and repeat.

On a side note. I just brought home a MBP about an hour before the issue. I turned bluetooth off on the MBP but could it be the problem? It was working fine with both machines on for about an hour.