Court Rules Activision Blizzard Split from Vivendi Can Move Forward
Activision Blizzards separation from Vivendi will proceed following a successful appeal overturning an injunction to prevent the move.
Update: Activision Blizzard completes Vivendi share buyout.
Original Story (10/10/2013): Bobby Koticks charge to secure Activision Blizzards independence from Vivendi with a $8.17 billion buyout is moving forward following a successful appeal of a preliminary injunction that delayed the buyout last month. The deal was delayed after multiple investors filed lawsuits to stop the split from of which the second, filed by Douglas Hayes, resulted in a preliminary injunction, and effectively stopping the deal temporarily. As of today, Activision Blizzard confirmed that the court has overturned that injunction and the deal is expected to be completed by October 15th, 2013.
Activision Blizzard CEO Bobby Kotick led the charge to split the publisher from parent company Vivendi following a potentially disastrous plan by Vivendi to sap cash from Activision and burden the gaming company with a heavy load of its debt. You can read the full press release from Activision Blizzard below.
Delaware Supreme Court Unanimously Reverses Lower Court Decision
SANTA MONICA, Calif.--(BUSINESS WIRE)-- Activision Blizzard, Inc. (NASDAQ: ATVI), a global leader in interactive entertainment, announced today that the Company expects to complete by October 15, 2013 the previously announced transactions with Vivendi, S.A. and ASAC II LP, pursuant to which the Company will acquire approximately 429 million Company shares and certain tax attributes from Vivendi for approximately $5.83 billion in cash or $13.60 per share. In a separate but simultaneous transaction, ASAC II LP, the investment vehicle led by Activision Blizzard CEO Bobby Kotick and Co-Chairman Brian Kelly, is expected to purchase approximately 172 million Company shares from Vivendi for approximately $2.34 billion, in cash or $13.60 per share.
The Company also announced today that the Delaware Supreme Court lifted a preliminary injunction related to these transactions that was previously entered by the Delaware Chancery Court in Hayes v. Activision Blizzard, Inc., thereby enabling the parties to move forward with the completion of the transactions.
About Activision Blizzard:
Activision Blizzard, Inc. is the world's largest and most profitable independent interactive entertainment publishing company. It develops and publishes some of the most successful and beloved entertainment franchises in any medium, including Call of Duty®, Skylanders®, World of Warcraft®, StarCraft® and Diablo®. Headquartered in Santa Monica, California, it maintains operations throughout the United States, Europe, and Asia. Activision Blizzard, Inc. develops and publishes games on all leading interactive platforms and its games are available in most countries around the world.
This press release contains forward-looking statements including, but not limited to, those relating to the transactions and whether or not the Company will consummate the transactions and the timing of the transactions. The forward-looking statements in this release are based upon information available to the Company as of the date of this release, and the Company assumes no obligation to update any such forward-looking statements. Although these forward-looking statements are believed to be true when made, they may ultimately prove to be incorrect. These statements are not guarantees of future events and are subject to risks, uncertainties and other factors, some of which are beyond its control and may cause actual results to differ materially from current expectations.
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