Rob Fahey at gamesindustry.biz:
Chatter at the Game Developers Conference in San Jose is strongly suggesting that Microsoft is on the verge of signing a deal to acquire British developer Lionhead, with rival bidder Ubisoft reported to be out of the running.
Well-placed sources in the development industry claim that the two companies are in the final stages of negotiation and may announce the deal within the coming days – but Lionhead founder Peter Molyneux has flatly denied claims that further job losses could happen at the studio in the wake of the acquisition.
The latter is in reference to the fact that Lionhead hasn’t been doing too well lately. There are more details by following the link, but Microsoft was the publisher of Lionhead’s only hit game console title, Fable.