A Delaware Chancery Court has issued a preliminary injunction against a plan that would see Activision Blizzard separate itself from parent company Vivendi with a stock repurchase program. The court blocked the deal after multiple lawsuits were filed by shareholders seeking to block the deal. The transaction will be halted until its terms are modified on appeal or the transaction is approved by a shareholder vote of "non-Vivendi stockholders."
"Activision Blizzard remains committed to the transaction and is exploring the steps it will take to complete the transaction as expeditiously as possible," the company said in a statement.
In July Activision Blizzard announced its intention to separate from its parent company Vivendi by purchasing around 429 million shares, totaling roughly $5.83 billion in cash. Activision CEO Bobby Kotick and co-chairman Brian Kelly would purchase 172 million shares, worth an estimated $2.34 billion. They have personally contributed $100 million to secure the sale. Kelly would become sole chairman under the restructure, with Vivendi retaining a minority 12 percent stake in the business.
Last week, shareholder Douglas M. Hayes stated in a lawsuit that the sale would "unjustly enrich Kelly, Kotick, and the other participants."