Splashpage.mtv has the story:
"It's true," he told fans on Twitter. "I'm directing Magic Kingdom, not Iron Man 3. I've had a great run with Marvel and wish them the best."
“Marvel and I both came of age together,” he said. “The years that we shared were a pivotal experience. [Marvel chief Kevin Feige] has a firm grasp on the many franchises and how they all interweave and I am happy that I had the opportunity to establish the world that these characters can now play in."
"Iron Man has given me tremendous opportunities and Kevin and I are enjoying a lot of momentum in our careers thanks to the Iron Man films," he added. "I look forward to seeing what others can do playing in the same world.”
Although Favreau won't be directing "Iron Man 3," his days with Marvel aren't over. The director confirmed that he's still a producer on The Avengers, and it remains unknown — and therefore still possible — whether or not he'll reprise his role as Happy Hogan for the next Iron Man outing. This isn't necessarily bad news, and I don't think it hurts to bring new blood to the IM franchise. Favreau did his part in bringing us, well, one really great movie and a decent sequel, and with the quantity of Marvel films hitting in the near future, it's not like we won't have other news to keep us occupied.
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