Shareholder sues Activision Blizzard over $8.2 billion split plan
Game publisher Activision Blizzard sued by shareholder in an attempt to block stock sale; deal reportedly worth $8.2 billion.
A shareholder of Activision Blizzard has filed a lawsuit against CEO Bobby Kotick, co-chairman Brian Kelly, and Vivendi SA in an effort to block a stock sale.
According to Bloomberg, shareholder Douglas M Hayes stated in the application that the sale would "unjustly enrich Kelly, Kotick, and the other participants." The lawsuit was filed on September 12 in Delaware's Chancery Court.
In July this year, game publisher Activision Blizzard announced its intention to separate from its parent company Vivendi. The deal was orchestrated by Activision Blizzard's management team and assisted by investors. The intended trade will result in shareholders owning a controlling stake in the business.
Kotick and Kelly were responsible for the purchase of 172 million shares, worth an estimated $2.34 billion. The pair personally contributed $100 million to secure the sale. At present, Vivendi owns 61 percent of Activision Blizzard's stock.
The announcement followed news earlier this year that Vivendi was exploring a "variety of options" to sell a portion of its stake in Activision Blizzard. At the time, a number of potential buyers were named, including Microsoft, Time Warner, Tencent, and Disney.
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