Universal deny Snow White loss
It looks like Universal realised the bad press that the dropping of Kristen Stewart from a Snow White and the Huntsman sequel could bring them, if the original story was correct and even if it wasn't their marketing department must have seen the potential for damage that this story could bring them.
After releasing a statement denying the story they have announced that, although they deny it, they are looking at possibilities. Obviously since they denied the original story that would mean that dropping Stewart is not one of those possibilities, they're just looking at all the others.
Well if they are looking at possibilities then the dropping of Kristen Stewart and the Snow White character would be one of them you would think, well I would anyway, and that's probably how the story came about. However they are in denial mode regarding the previous story that she was being dropped.
"We are extremely proud of Snow White And The Huntsman and we're currently exploring all options to continue the franchise. Any reports that Kristen Stewart has been dropped are false."
As I said, "all options" except for the one about dropping Stewart? I feel like the moment in The Princess Bride:
"Every ship but your four fastest, you mean" "Yes. Yes, of course. Naturally not those four."
The denial comes through Deadline from Universal Pictures themselves but clearly they are trying to decide what to do with the sequel and since they have dropped the writer David Koepp everything is up in the air and even the Deadline article begins to speculate what that means.
It's clear from their denial statement though that they are exploring all options except for dropping Snow White and Stewart, and frankly they couldn't without making a completely different film.