According to an IGN report, Valve and the small team the company set up in San Francisco last December have parted ways. The subsidiary was headed by former Popcap and Blizzard veterans Tod Semple and Jeff Gates
“Jeff and I are working on indie games again,” Semple told IGN. “We were working for Valve in a remote office in San Mateo. It turned out that there weren’t many benefits for either side in that arrangement.”
“Valve was super cool about it and is letting us continue to work on our game and is also giving us the office”, Semple added. “So Jeff and I are starting up a new company called Temple Gates Games.”
Valve also issued a statement to IGN, saying: “We were big fans of their prior work. We worked with them during their startup phase, but they’re independent now and still working on their game. We wish them the best of luck.”
(via Joystiq)