Confirmed: Jon Favreau Won’t Direct Iron Man 3 [UPDATE]

UPDATE: Favreau just confirmed that he will not be directing Iron Man 3 on twitter: “It’s true, I’m directing Magic Kingdom, not Iron Man 3. I’ve had a great run with Marvel and wish them the best.”

Rumors are surfacing today that Jon Favreau has told Marvel that he will not direct the third Iron Man film — with a number of theories being put forth as to the reasoning from both sides:

One informed source hears that he was frustrated with Marvel’s urge to stuff more of their in-house heroes into the next film in the wake of The Avengers. In a recent interview with MTV News, Favreau explained that based on his conversations with Marvel Studios executives, he had no clarity as to what a third Iron Man film would even be about. “In theory, Iron Man 3 is going to be a sequel or continuation of Thor, Hulk, Captain America and Avengers,” said Favreau at the time, “This whole world … I have no idea what it is. I don’t think they do either, from conversations I’ve had with those guys.”

Still other industry insiders look at Favreau’s growing price tag and speculate that he was getting too expensive for the frugal Marvel and its equally cost-conscious parent company, Disney. In fact, one Hollywood player familiar with Marvel’s playbook theorizes that the company had been pushing a confusing and packed vision of the third film as a tactic to provoke Favreau into leaving the project.

Vulture nailed down Powers rumors with a recent report, let’s see if they have this one right.

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