I believe Billboard's source, not US Weekly's. US Weekly was the only one with a supposedly source that told them 1D is breaking up (my guess is the source was Zayn). After a few hours of the story sitting there, all of the other papers starting reporting the same thing, based only on US Weekly's story.
Billboard later said
'Fans can breathe a sigh of relief... probably. An online report alleging One Direction's current hiatus is actually a permanent break isn't true.
A source close to the band tells Billboard "nothing has changed regarding hiatus plans for the group, and all will be revealed in due time from the band members' own mouths."'
http://www.billboard.com/articles/columns/pop/6842942/one-direction-break-up-rumors-not-true
However, I would not be surprised if it is true that they did not, at this time, sign another One Direction recording contract. All that would do is restrict what they can do with their solo hiatus time. To heck with that. I think they want to do whatever they want to do, and not be restricted by someone else's opinion, connections, desire for a cut of the money or a claim to what they create. I think they probably want to be untethered and free to write songs, record, perform or record with other artists on other labels, act, do whatever the heck they want. And then after the hiatus, if there is still a demand for 1D, they could sign a new 1D contract. My opinion.