Cheadle will step in to play Jim Rhodes, Tony Stark’s best friend who would also become the armor-clad hero War Machine.
Although there was no comment from Marvel Studios, The Hollywood Reporter says that sources close to the deal reported the negotiations fell through with Howard over financial differences, among other things.
The character of Rhodes is expected to play a larger part in “Iron Man 2.”
Justin Theroux is writing the screenplay with Jon Favreau to return as director and Robert Downey Jr. to step in again as Stark/Iron Man. Gwyneth Paltrow also is expected to be back as Stark’s assistant, Pepper Potts.
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