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IIRC, at Minicon SF convention last spring, Patrick Nielsen Hayden said that since the original experiment last year, there's been a change in management at Holtzbrinck, and the new head of the company doesn't believe in DRM. He didn't comment on whether negotiations between Baen and Tor were ongoing, but I inferred that if negotiatons were ongoing and successful, they wouldn't be rejected outright by Holtzbrinck.
I'm hoping that they can come to terms, and have a program with pricing comparable to Baen's current pricing. I'd probably buy all the Vinge and Stross books they offered last year and many more.
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