Activision Blizzard's split from Vivendi to move forward, court rules
Faced with shareholder lawsuits halting a pending split from parent company Vivendi, the Delaware Supreme Court ruled today in favor of Activision Blizzard, permitting the deal to continue.
Activision Blizzard first announced
intentions to buy back a majority stake from the media conglomerate in July, in order to become an independent (albeit publicly-traded) corporate entity. However, several shareholders
filed suit against the publisher, arguing that the stock purchase disproportionately benefited Activision CEO Bobby Kotick and an elite group of investors, leaving the rest of Activision shareholders out in the cold.
The suits successfully blocked Activision Blizzard from pursuing the buyback deal pending a vote from shareholders. Activision appealed the injunction
with the state supreme court in late September, resulting in today's court judgment in favor of the publisher. The company now expects to complete the stock purchase by October 15th.
Business analysts from Wedbush Securities were optimistic at the news, expecting an uptick in Activision Blizzard share prices to follow the announcement.