Two things are possible. 1. He would have taken as much of his hoarded treasure and fled as far north as possible after the battle to make sure no other dwarves got up the nerves to try a second time to reclaim the Lonely Montain. 2. Sauron would have bribed into his service with gold and gems and as much precious materials as he had to. He would be flying high with the Nazgul and there Fell Beasts by the time of the Two Towers. If he flew with the Nazgul, Gondor would not have lasted as long as it had. So either two things would have happened, he would never be seen again except for the unlucky traveler every now and then, or he would be burning Gondor to the ground.
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Hail to the Lords of Angmar, for we are the true power!
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