New rumours suggest that LA Noire developer Team Bondi is in acquisition talks with digital production company Dr D Studios, which is currently working on Happy Feet 2.
"The word is going round that Team Bondi is being folded into Kennedy-Miller Mitchell Films studios," a source from inside Dr D Studios told Kotaku.
"Team Bondi is pretty much doomed after the scandal and cant find any new supporters, so by doing this they can hide their name."
Apparently Brendan McNamara and other Team Bondi employees were recently given a tour of studio. Dr D Studios is owned by filmmaker George Miller, who also owns production company Kennedy-Miller Mitchell and is best known for his work on the Mad Max films.
"Brendan McNamara was seen walking through the buildings of Dr. D yesterday, where Happy Feet 2 is being made," claimed another source.
"Because Dr. D is filled with former Team Bondi employees who left due to the abusive work conditions. This unexpected visit was quite unsettling to put it mildly."
The story also claims that Miller, struggling with deadlines for Happy Feet 2, was impressed by stories of McNamara's attitude to deadlines. Team Bondi was recently the focus of controversy about working conditions during the development of LA Noire.
Earlier this year Cory Balrog, ex-God Of War II director and KMM employee, hinted that he was working on a Mad Max game at the studio, to accompany the upcoming film. Those plans are apparently now on hold while Miller finishes penguin dance adventure Happy Feet 2.