Red 5 Studios, a company lead by Mark Kern, formerly working for Blizzard Entertainment most famously as team lead on World of Warcraft, has been saved from bankruptcy by an unnamed investor. However, all is not well. Around 30 people have been let go, and the studio is said to be refocusing their efforts towards something "aimed at the Chinese market" rather than the shooter MMO they had been working on previously. At least this is according to Kotaku's sources (and they usually have nice ones).
This is the official wording from Red 5 Studios:
"Red 5 Studios, Inc. is currently working on an unannounced massively multiplayer online game. Recently, the team formed around a new direction and took on additional investment from a strategic partner in the online games industry.
Red 5 remains committed to releasing a AAA quality, online title targeted for a worldwide release. The company has restructured the team in order to accomplish this goal. As part of the restructuring, some team members chose to part ways while others were let go. Red 5 has great respect for these departing team members and the contributions they have made."