http://movies.ign.com/articles/740/740704p1.html
There goes the movie tie-in with the game!
IGN.COM said:October 20, 2006 - The Halo movie hit a snag today as both studios financing the project dropped out! Rumors are swirling that 20th Century Fox and Universal were freaked out over a rising $135 million budget, but producers Peter Jackson and Fran Walsh are claiming that the studios bolted after filmmakers and Microsoft refused to have their share of the profit cut.
Walsh and Jackson's rep, Ken Kamins, spoke to industry mag Variety and explained, "What happened was this: Universal, on behalf of both studios, asked for a meeting with the filmmakers just prior to the due date of a significant payment. Basically, they said that in order to move forward with the film, the filmmakers had to significantly reduce their deals. They waited until the last minute to have this conversation. Peter and Fran, after speaking with their producing partners and with Microsoft and Bungie (the studio that designed the original game), respectfully declined."
There goes the movie tie-in with the game!