Fan of TheForce.net "DarthDooku" writes in:

"According to the Sci-Fi Wire, the physical production unit of ILM, which deals with models, miniatures, and stage work, is being sold to an ILM employee, Mark Anderson, and will be renamed Kerner Optical.
It will be a preferred subcontractor for ILM. More information is available here: http://www.scifi.com/scifiwire/index.php?category=0&id=36609."

Ain't It Cool News sums it up best with this one line - "with the sale of the physical unit, it should now be called Industrial Light, as the Magic is leaving with the model shop..."