Source: The Wrap, People.com
Gemma Arterton (Prince of Persia) is reportedly the leading candidate to replace Megan Fox in Transformers 3. Meanwhile, Fox's camp is trying to spin things by releasing the following statement: "It was her decision not to return. She wishes the franchise the best."
Source: Deadline New York
Shia LaBeouf will have a new love interest in Transformers 3. Paramount will not pick up Megan Fox's option, and it is reportedly mostly Michael Bay's decision. The film is already pegged for July 1, 2011 release date.
Losing Fox probably won't have a negative impact on the film's receipts. There are plenty of Hollywood starlets who would kill to be part of such a lucrative property. At the very least, Bay should be able to find someone who doesn't compare him to Hitler.