Activision Allowed To Purchase Stake In Company From Vivendi
The Delaware Supreme Court has lifted a preliminary injunction to pave the way for Activision to buyout 429 million shares (plus tax attributes) in the company from current owners Vivendi for $492 million by October 15.
Previously, a lower court blocked the sale due to a lawsuit filed by shareholder Douglas Hayes, but the state's Supreme Court has ruled that this situation is a stock repurchase and therefore not subject to shareholder approval.
Also in on the deal is investment group ASAC II led by Activision Blizzard CEO Bobby Kotick (above), which will purchase 172 million shares.
By all accounts this is good news for Activision, which will be in a better position now that it's out from under Vivendi.