I actually thought they were already gone. I know Activision had been shopping them around for a while, but apparently no takers.
I'm not surprised, really. This was really the first salvo in Activision's killing of underperforming studios/brands, and the one-two punch of the financial failures of Blur and the new Bond game made it sort of inevitable for Bizarre.
Having played both Blur and Blood Stone, I can also say that I really found it tough to come up with any reaction beyond 'meh', so I can't say I'm real broken up about this. It sucks for the people that are out of a job, though the games they churned out were reasonable to a point that I don't imagine most of them won't end up somewhere else pretty easily.