The report claims that Xbox Entertainment Studios is “shopping for a new home”, and has had preliminary talks with Warner Bros. The report adds that if Warner Bros did make the purchase, it would merge Xbox Entertainment Studios with Machinima.
A Warner Bros. spokeswoman said that the studio is “constantly having preliminary discussions regarding business opportunities with numerous companies at any given time. A conversation is just that — a conversation.”
The report also notes that an agreement with Warner Bros. is unlikely, however reports like this suggest that there may be some sort of future for Xbox Entertainment Studios.
(via Game Informer)