We need to pull back on this narrative a little here. It's not like King is throwing out well-known properties with his "Dollar Baby" thing. He's selling the rights to very, very obscure short stories which are made into films that have basically no chance of ever receiving commercial distribution. In fact, there's only a handful that have ever been released commercially, and it was only after King had granted permission, which means he renegotiated the deal so he can get cut of sales. It's a charitable gesture, sure, but it's not like he's passing out properties like Oprah passes out Pontiacs—this isn't "You get an IP! You get an IP!"
I'm sure the situation is pretty simple. HHN used the Kubrick loophole for Shining, it rubbed King the wrong way for a lot of reasons (the fact that they weren't required to pay him is probably chief among them), and now he's reluctant to work with them. Pretty cut and dry.