According to several reports that we have seen, apparently Second Life developer, Linden Labs, might be up for sale. Sources are suggesting that Microsoft is apparently considering the purchase of Second Life and the studio.

The rumors seem to have been fueled by an insider who is claiming that the company has been looking at offers for some time. The fire really started to blaze when a Tweet from Second Life Community claimed that Microsoft had already submitted a bid to Linden Labs and Second Life.

Of course, no one at Microsoft is commenting; and apparently Linden Labs has now put a lid on the talk as best that they can, saying that they refuse to confirm or deny whether any possible deal is in the works. Reports do suggest that the Linden Labs office has been shut down, and you can make of that what you will. While TechEye claims that the source supplying the information that they received is reputable and from an employee, you have to think that something might actually be afoot.

Read more in the TechEye story here.