Activision-Vivendi $8.2bn deal cleared in Supreme court

Delaware Chancery court's temporary injunction to prevent the buyback of company shares by Activision has been lifted.
Written by Charlie Osborne, Contributing Writer

Activision Blizzard's plans to buyout parent company Vivendi's major stake in the firm can now go ahead, after a temporary block on the deal was overturned in court.

On Thursday, the game maker announced that it expects to complete the $8.2 billion deal on or by October 15 2013, according to a press release.

The parties -- Activision, Vivendi and ASAC II LP -- are now free to go ahead with the transaction. Under the terms of the agreement, Activision will acquire approximately 429 million company shares and certain tax attributes from parent company Vivendi for roughly $5.83 billion in cash. In addition, investor ASAC -- led by Activision Blizzard CEO Bobby Kotick and Co-Chairman Brian Kelly -- will purchase 172 million company shares from Vivendi for $13.60 per share, or $2.34 billion.

The deal will reduce Vivendi's stake to roughly 12 percent.

Originally announced in August, the deal was delayed after an Activision shareholder filed a suit against both Activision and its parent company, arguing that excluding Vivendi, the deal was not subject to a majority vote of Activision investors. However, the temporary injunction imposed by Delaware Chancery court has now been overturned by the Delaware Supreme Court.

At the time of the original announcement, Kotick said:

"These transactions together represent a tremendous opportunity for Activision Blizzard and all its shareholders, including Vivendi. We should emerge even stronger-an independent company with a best-in-class franchise portfolio and the focus and flexibility to drive long-term shareholder value and expand our leadership position as one of the world’s most important entertainment companies."

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