I have actually heard at least 3 different rumors concerning this topic. Everything from "Universal has never considered it" to "The talks are still ongoing but stalled until after the Tolkien's Law suit with Jackson is settled.". There is one that Universal pitched it and the Tolkien family shot it down immediately.
The most recent one is that they have given up on "LotR" and a going after just "The Hobbit". If that is true we can give up hope for "Walking: The Ride" and can look forward to "Running: The Ride".