Ubergizmo is keeping the rumor mill flowing with this from an article on October 21:
"It was earlier rumored that Microsoft had already acquired or was in the process of acquiring Linden Lab, the company behind the popular virtual reality game, Second Life. While there hasn't been any official confirmation from either party of such a deal, the rumor mill has begun to churn again as the founder of Linden Lab, Philip Rosedale, has confirmed that he will be quitting his CEO post, just four months after he started. Could it be an indication that the company was preparing to be gobbled up by Microsoft? Of course, it's still speculation at this point, but we'll be keeping an eye on the situation".
I discounted this before but I am now officially suspicious. An infusion of Microsoft cash into Second Life would not be a bad thing actually.