Delaware Supreme Court to Hear Appeal of Shareholder Lawsuit Against Activision Blizzard

Activision Blizzard will take its fight against shareholders trying to block a deal to become independent from majority stakeholder Vivendi before Delaware's Supreme Court next month, according to Reuters.  Lawyers for the company hope to overturn a lower court's surprise decision earlier this month to halt the video game company's planned $8.2 billion deal with French media conglomerate Vivendi SA. The state's high court announced yesterday that it would hear arguments in the case October 10.

Delaware Court of Chancery judge Travis Laster temporarily halted the proposed deal on Wednesday. Activision investor Douglas Hayes sued the company's board of directors earlier this month, alleging that it had breached their duty to shareholders by not putting the deal to a stockholder vote.

Under the terms of the deal, Activision Blizzard would buy back 429 million shares from Vivendi for $5.83 billion. An investor group led by Activision Chief Executive Bobby Kotick and Co-Chairman Brian Kelly would separately purchase about 172 million Activision shares from Vivendi for $2.34 billion. This would make it so that Vivendi's stake in the company is greatly reduced.

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