Currently Activision is exploring its options regarding what to do with the games that it won't be releasing, options which presumably include selling the projects to other publishers. Nothing has been confirmed yet, but
Variety is reporting that Brutal Legend is "very close" to finding a new publisher.
Without actually citing any source for the information, the trade publication is reporting that Double Fine has found a likely partner to help put the game out.
The deal is said to be a "more 'unique' arrangement" with a partner who isn't a traditional game publisher.