One of the rumors the GamesIndustry.biz staff picked up at the Game Developers Conference was more rumbling about a Microsoft acquisition of the Peter Molyneux founded Lionhead. Creator of fan favorites Fable, Black & White and The Movies, they've run into a rough patch financially. Bill's billions are coming to rescue, allegedly, beating out the also interested buyers at Ubisoft.

Rumors also indicate an announcement could be coming "within the coming days" and that said studio purchase would prevent any further lay offs.

Molyneux denies layoff rumours as Microsoft closes in on Lionhead [GamesIndustry.biz]

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