"The studio is currently exploring options to continue the franchise," said a Universal spokeswoman.
"Snow White and the Huntsman" grossed $389.2 million worldwide, a modest amount of money. If the scandal isn't what got the studio to rethink a sequel, it could be the large salary that Stewart commands.
A new writer is currently being sought out, and they hope to begin filming in July. There is no official word on whether or not Sanders would return to the project.
As of 3:30 EST a spokeperson for Universal Studios has issued the following statement -- "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."