LucasArts sees the 'controversity' surrounding EMI and the relative popularity of adventure games in Europe. They also notice that the (internally developed) Star Wars games won't prosper much longer and decide to create a small company in Europe that produces adventure games. It doesn't use any Lucas property at first, only funds. They start slowly, but enthusiasticly with small budgets, but when their first small games are successful, they will develop games based on LucasArts' licenses.
So, okay, I stole this from Ron, but at least that's a remotely possible idea.
Also, I checked out the Mr. Smoozles Goes Nutso
demo yesterday and it's fantastic.