Raimi's decision to withdraw from the project supposedly stems from the summer 2011 release date, and how it would compromise the creative integrity of the film. This all comes after news that complications in the Spider-Man 4 script threatened to delay the film.
For Blizzard fans, this could mean that Raimi is now free to shift his focus to the World of Warcraft movie. However, Mike Fleming of Deadline Hollywood cites an alternative project option to the Azerothian epic, The Given Day, a novel written by Dennis Lehane, author of Shutter Island and Mystic River.
No official announcements from Raimi or Blizzard yet, however Fleming is a very reliable source for rumors in Hollywood.
[Thanks to everyone for the tips!]