The rumor started to buzz following a report from Variety that claims that “multiple sources close to the companies confirmed that talks are under way”. The two companies are no strangers to each other, since Legendary is the studio responsible for the latest game-gone-to-Hollywood, Gears of War: The movie. Also, Legendary CEO Thomas Tull has his connections with the games industry, since he was a board member of Brash Entertainment (a relatively unknown dev that made Jumper: Griffin’s Story and Alvin and the Chipmunks last year).
On the other hand, Mark Rein, Epic Games’ vice president, claims that this story is nothing but “another rumor”. And that’s our opinion, too: it’s nothing but a rumor. But time will tell for sure.