This is not from gaming related tabloids but the movie industry.
http://www.hollywoodreporter.com/news/xbox-shops-entertainment-studio-warner-725562?mobile_redirect=false
BTW I didn't know Machinima was affiliated to MS.
Quote
Microsoft may have decided to shutter its nascent Xbox Entertainment Studios but it's not necessarily game over for the Santa Monica studio.
Sources tell The Hollywood Reporter that XES is shopping for a new home and has had preliminary talks with Warner Bros. about possibly becoming a stand-alone entity based at the studio. In that scenario, Warners would look to merge XES with Machinima, the video game-centric YouTube network in which it owns a stake.
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."
Reps for XES and Machinima declined comment.
http://www.hollywoodreporter.com/news/xbox-shops-entertainment-studio-warner-725562?mobile_redirect=false
BTW I didn't know Machinima was affiliated to MS.