A conversation is just that, says Warners.
It's far from a done deal, but Microsoft is trying to find a buyer for its Xbox Entertainment Studios, and the first potential purchaser is Warner Bros. If this deal goes forward, the most likely result is that the Studio will merge with Warner's Machinima YouTube channel.
Warner Bros' spokeswoman was careful to say that it is "constantly having preliminary discussions regarding business opportunities with numerous companies at any given time. A conversation is just that - a conversation." The talks are in very early stages, and there's no guarantee an agreement will be reached.
However the news is a shot in the arm for Xbox Entertainment Studios inasmuch as, without a buyer, it will cease to exist. It still has a few projects in the pipeline, but when Phil Spencer first made his 'change is never easy' announcement, closure was the only option for XES.
The deal would also be good for Machinima, which would gain the infrastructure it needs for big budget projects. It has worked with Xbox before, on the Halo 4: Forward Unto Dawn series.
Source: Hollywood Reporter