Games Industry reports that sources close to the publication revealed that Lionhead is in talks with both Microsoft and UbiSoft for a possible acquisition. The official line from Lionhead according to the piece was "Lionhead gets approached with regard to acquisition on a very regular basis and this has been the case since the company was founded 9 years ago." But nothing specifically related to Microsoft or UbiSoft.

Lionhead Back in Acquisition Talks with Key Publishers [Games Industry]