Activision Blizzard CEO Bobby Kotick is on a mission to make his company independent of parent Vivendi. Unfortunatley for him, that plan has been put on hold today as a court has ruled in favour of an opposition claim from a Vivdendi shareholder.
Kotick aims to gain a 25% hold on Activision stock through the use of an investment group headed by himself and co-chairman Brian Kelly. However their plans have met with resistance after Vivendi shareholder Douglas Hayes filed a complaint stating that the stock purchase would constitute unjust enrichment. Today the court dealing with the case ruled in favour of Hayes, putting a stop to Kotick’s plan.
Hayes is not alone in attempting to prevent Activision’s break-off, with shareholder Todd Miller filing a similar lawsuit.
In order for Activision to continue its buyout, the company must either win an appeal against Hayes’ lawsuit, or have their transaction approved by a stockholder vote of non-Vivendi shareholders.
“Activision Blizzard remains committed to the transaction and is exploring the steps it will take to complete the transaction as expeditiously as possible,” said the company in a statement.