updated 11:57 pm EDT, Wed September 18, 2013
Deal worth well over $8 billion dollars put on hold by shareholder suit
The Delaware Chancery court has issued a ruling on a lawsuit, putting the pending sale of Vivendi's portion of Activision Blizzard back to its founders on hold. Activision is seeking to buy back 429 million shares of itself from Vivendi for $5.83 billion, with chief executive Bobby Kotick and chairman Brian Kelley will each purchase about 172 million shares of Activision stock.
A shareholder sued Activision Blizzard and Vivendi, claiming that the deal should not be finalized, and it was not voted on by the Activision shareholders, excluding the majority owners. The court granted a temporary injunction on the deal, unless the judge reconsiders or the transaction is approved by a shareholder vote.
"Activision Blizzard remains committed to the transaction and is exploring the steps it will take to complete the transaction as expeditiously as possible," the publisher said in a statement. Other than blocking the deal, it is uncertain what the shareholder is attempting to accomplish in filing the suit.