In October of 2010, we heard that ABC Family was developing a Cloak and Dagger show for the 2011-2012 season. We heard that since Disney owns Marvel Entertainment and ABC, that it was going to be easier for Marvel characters to get their own series on ABC channels.
ABC Family has been shooting pilots and picking pilots to become series lately. According to Deadline, "ABC Family is making its most aggressive expansion into original programming to date". Cloak and Dagger has not been one of them. Maybe in a future season Cloak and Dagger could get its own series on ABC Family, but for now the channel isn't going with it.
Deadline said this:
"I hear ABC Family has finalized its series order to drama pilot The Lying Game. Game joins recently greenlighed comedy series The Great State of Georgia and dramas The Nine Lives of Chloe King and Switched at Birth. Additionally, a fifth pilot, What Would Jane Do, remains in contention for a series pickup after ABC Family extended the options on the actors. This has been ABC Family's biggest development season with 6 pilot orders. With four and possibly even five of them going to series, ABC Family is making its most aggressive expansion into original programming to date."