We learned late last month that Telltale Games would be closing down, with all future projects canceled and the current The Walking Dead: The Final Season being cut short. However, a new report suggests that the company is looking for another company to hire their old staff and finish up the final season.
Kotaku is reporting that Telltale Games is in negotiations with other companies to complete The Final Season, which would include the other company hiring staff from Telltale to finish the job. The sources say that the entire original development team being hired for the job would be ideal, but with former Telltale devs looking for new work the deal is very time-sensitive.
As for how far along Telltale Games was with the last two episodes, reports suggest that the third episode was nearly completed and the fourth episode was in the early stages of development. This suggests that this new company would be hiring the new staff as contractors, rather than bringing them on permanently and then shifting them to new projects once The Final Season was completed.
This all needs to be taken with a grain of salt for the time being, but the quality of the sources gives reason to believe this is legitimate. Regardless of what happens with the last season of The Walking Dead, priority should be given to getting the Telltale Games developers the severance pay that they were promised.