Epic, based in Cary, is the developer of the successful “Gears of War” game franchise, which has sold more than 5 million copies around the world. The company also makes money licensing its Unreal Engine – widely used software that helps other developers make their games.

Variety’s report that acquisition talks are under way cited “multiple sources close to the companies.”

Legendary is a private equity-backed film production company based in California. The company, which has helped finance movies including this year's mega-hit “The Dark Knight,” already has ties to Epic Games: It’s co-financing a movie based on “Gears of War.”

Read the entire article HERE.

[Update]
Edge spoke with Epic VP Mark Rein:

Epic VP Mark Rein told Edge in an e-mail that the buyout report "is just another rumor," stopping short of flatly denying talks are in process.

Read the entire denial HERE.