UPDATE 2: Sony has released an official statement to THR indicating that the deal is indeed dead in the water.

Much of today’s news about Spider-Man has mischaracterized recent discussions about Kevin Feige’s involvement in the franchise, We are disappointed, but respect Disney’s decision not to have him continue as a lead producer of our next live-action Spider-Man film. We hope this might change in the future, but understand that the many new responsibilities that Disney has given him – including all their newly added Marvel properties – do not allow time for him to work on IP they do not own. Kevin is terrific and we are grateful for his help and guidance and appreciate the path he has helped put us on, which we will continue.

UPDATE 1: io9 has reached out to Sony and has received this comment from a representative:

A Sony representative said it’s their belief this dispute is simply over a producer credit and negotiations are ongoing. They further clarified that Feige has contributed to other Spider-centric movies that he did not receive a producer credit on. Other sources tell us the Deadline story is completely accurate.

Despite Spider-Man: Far From Home becoming Sony’s highest grossing movie, finally overtaking James Bond’s Skyfall, the deal between Marvel and Sony has fallen through. Due to no fault of Kevin Feige, but Disney. Reportedly, Disney was insistent on having the co-financing arrangement changed from the original 5% of first dollar gross to 50/50. Keep in mind that Disney already owns the merchandising rights to Spider-Man. Sony hasn’t had the best of luck with sustainable franchises, outside of Jumanji and, of course, Spider-Man. They can’t afford to share so much of their profits with another studio. Sony were more than willing to continue the deal unchanged, but once Disney pushed for more, Tom Rothman and Tony Vinciquerra of Sony backed out.

Deadline is saying that Sony intends to make two more Spider-Man movies with Tom Holland as Spider-Man and Jon Watts directing. Whether they would be within the same continuity as the Marvel Cinematic Universe is up in the air, but without the involvement of Marvel Studios, it is unlikely.

All that being said, the reporting on this massive debacle seems to vary per trade. While Deadline’s report seems definite and final, Variety is reporting that the deal is in jeopardy but is still ongoing and hasn’t been finalized. Things could work the same way Feige miracle-worked James Gunn back into the MCU following a huge social media scandal but for the meantime, we can only hope Spidey finds his way back home.

Source: Deadline