Imaginedvl on 29 February 2024
One thing to consider (and I believe that's what happened), is that they may have been targeted for closure after the restructuring (or at least a lot of layoffs).
Microsoft talked to them (or TFB leadership talked to Microsoft) and offered them that alternative, which would explain why.
Everybody wins like that in the end; Microsoft does not need to do more layoffs (or fewer at least), TFB studio stays alive, and people keep their jobs as independent studios, costing nothing to Microsoft. And they can still get a partnership with Microsoft after that.
