I heard the same thing, 1st hand, from one of the folks behind Launchbox Digital. As far as I can tell, it's not a rumor, it's dead-true.

But, the corollary to that, is that a different incubator program may be emerging to fill the LD gap. I'm not sure how much of what I was told was "not for public dispersal" versus "already widely known" though, so I'll defer to say any more... Just keep your eyes and ears open, I expect there will be more news in the area at some point, regarding incubator(s).