"They offered me the rights to Watchmen back, if I would agree to some dopey prequels and sequels," Moore told Wired. "So I just told them that if they said that 10 years ago, when I asked them for that, then yeah it might have worked, but these days I don't want Watchmen back. Certainly, I don't want it back under those kinds of terms." Moore goes on to tell Wired that he doesn't even own a copy of Watchmen, and that he feels the comic may have had an overall negative effect on the industry.
The official word from DC is that if they moved forward on any new Watchmen projects, they'd offer them to Moore and collaborator/artist Dave Gibbons first. That's merely lip service, as they have to know by now that Moore is never, ever coming back to the property (or any property, for that matter -- Moore has been outspoken about leaving comics behind forever). If there's money to be made, rest assured, DC will stripmine the series for all its worth, regardless of whether it should be left alone or not. I'm surprised it hasn't been done yet, but I think the powers that be haven't wanted to piss off Alan Moore. If he's retiring, then, sadly, pissing him off doesn't have the same consequences as it used to have. That door is already closed.