A court injunction has halted a planned stock buyout that would have left Activision Blizzard and independent entity.
Initially, it looked like Activison Blizzard might be able to make a clean break from its parent company Vivendi when it revealed plans to buy back its stock and become and independent entity. These plans were unfortunately disrupted, however, when Delaware's Court of Chancery halted the transaction following an injunction issued as a part of an unhappy shareholder's lawsuit.
The shareholder suing the company, Douglas M. Hayes, has argued that transaction was initiated without the approval of Activision Blizzard's investors. He wasn't the only one with complaints. Shareholder Todd Miller also filed a shareholder derivative complaint against the publisher, complaining of "unjust enrichment" of the company's head executives, among other things.
The game publisher still hopes to go through with the deal. "Activision Blizzard remains committed to the transaction and is exploring the steps it will take to complete the transaction as expeditiously as possible," it said in a statement. It had initially hoped to have the buyout wrapped up by the end of September, something which most likely won't be happening at this point. If the company were able to resolve the outstanding issues and avoid further legal entanglements however, its parent company Vivendi would stand to make more than $8 billion from the stock sale.
Source: The New York Times