"Given the overwhelming community support for the Silver Lining project," Activision told Kotaku, "Activision is in discussions with Phoenix Online Studios about allowing them to continue to finish the game and then release it to their fans."
The unofficial sequel to the long-dormant adventure series was initially halted in 2005 after Vivendi (then owner of the King's Quest property) issued a cease-and-desist letter to the team. The project was revived months later as "The Silver Lining" after Vivendi granted the team a non-commercial fan license to use the King's Quest setting.
Years later, ownership of the King's Quest franchise transferred to Activision during the Activision Blizzard merger, leading to another round of talks and negotiations that, according to Phoenix Online, concluded after Activision "reached the decision that they are not interested in granting a non-commercial license to The Silver Lining, and have asked that we cease production." Whatever happens next, we'll let you know.