Source: A report on the Web site of UK trade mag MCV.

　　The official story: Elevation does not respond to rumors.

　　What we heard: It's no secret that Elevation Partners is looking to buy its way into the games industry. Earlier this year, it lost a bidding war with SCi for Tomb Raider publisher Eidos, but last week it picked up a mighty fine consolation prize in backing a merging of developers BioWare (Baldur's Gate, Star Wars: Knights of the Old Republic) and Pandemic Studios (Mercenaries, Destroy All Humans!) under a new holding company, of which former EA president and Elevation board member John Riccitiello will be CEO.

　　The MCV report says that Elevation's hunger for acquisitions has not yet been sated and attributes "sizzling senior-level chatter" as the source of suggestions that the firm's next target might be Peter Molyneux's Lionhead Studios (The Movies, Black & White). When asked by the magazine for comment, a Lionhead representative said that the company frequently receives buyout inquiries, but that there was more interest than normal of late.

　　The question here probably isn't whether or not Elevation has expressed an interest in Lionhead. The company's on the prowl for more developers, and Lionhead would be a prime pickup. But is Molyneux willing to sell? He chafed working within the Electronic Arts corporate structure after the publisher bought his Bullfrog Studios in the mid-'90s, and he left the company as a result. Riccitiello didn't come into the company until the year Molyneux was fed up and quit EA, so there's unlikely to be any personal rancor there, but the EA way of making games is the only way Riccitiello knows. And like with Pandemic and BioWare, any Elevation acquisition is likely to ultimately answer to Riccitiello. This very well may happen, and if it does, expect it to be solidly on Molyneux's terms.

　　Bogus or not bogus?: That Elevation is interested? Probably not bogus. That Lionhead would sell? Your guess is as good as ours.