Activision-Vivendi deal delayed by US court

Activision-Vivendi deal delayed by US court

Summary: Vivendi's plans to sell back the majority of its Activision stake for $8.2 billion has been blocked by a U.S. court.

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TOPICS: Tech Industry
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The upcoming deal between Activision and Vivendi has been delayed by a U.S. appeals court, the games publisher said on Wednesday.

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According to Reuters, Activision Blizzard's plan to buy back the firm's controlling stakes from parent company Vivendi for $8.2 billion has hit a road-bump after the deal's completion was announced in August. Last week, an Activision shareholder filed a lawsuit against both Activision and Vivendi, seeking to delay the transaction's official closing.

This appeal has been successful, as Delaware Chancery court has placed a temporary injunction on the deal. The shareholder suing Activision and Vivendi claims that as the deal was not subject to a majority vote of Activision investors -- excluding Vivendi as majority shareholder -- the buyout should not go ahead.

In a press release, the games developer said:

"Activision Blizzard remains committed to the transaction and is exploring the steps it will take to complete the transaction as expeditiously as possible."

Under the terms of the deal, Activision will acquire approximately 429 million company shares and certain tax attributes from parent company Vivendi for roughly $5.83 billion in cash or $13.60 per share. In a separate deal, investor ASAC II -- led by Activision Blizzard CEO Bobby Kotick and Co-Chairman Brian Kelly -- will purchase approximately 172 million company shares from Vivendi for approximately $2.34 billion, in cash or $13.60 per share.

Topic: Tech Industry

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