With an attempt to buy Yahoo seemingly thwarted, is Microsoft looking at yet another acquisition in Epic Games? That's the word from GamePro editor Travis Moses, who writes in the latest issue of the mag that "Microsoft will buy Epic Games for $1 billion this summer." While that sounds like Moses is fairly assured, we're considering rumor and speculation at this point. Local North Carolina station WRAL reports that Epic would be a good get for MS, securing long term rights to Gears of War, Unreal Tournament and royalties from the Unreal Engine.

While we fully expect someone from Microsoft to utter the words Gears of War II at GDC this week, unless determined to prevent an Unreal Tournament III for Xbox 360 cockblock, we're a bit hesitant about buy-out talk. The company does have a keynote planned this week, which we'll be liveblogging (*gulp*). Ready the F5 key for news.
Source

Out goes Bungie, in comes Epic.