Activision Blizzard Inc. was blocked by a judge from proceeding with a stock sale. This was after investors said that the stock sale would give control of the video game maker to a group led by a company director and its top executive.
Activision officials should hold a shareholder vote on the proposed sale before the deal would get approval. A Delaware Chancery Court Judge in Wilmington blocked the proposed deal yesterday according to a statement issued by Activision officials. The transaction was valued USD2.34 billion.
"Activision Blizzard remains committed to the transaction and is exploring the steps it will take to complete the transaction as expeditiously as possible," according to a company statement.
Activision announced last July that it would buy back USd5.83 billion of its shares from Vivendi SA. While the China based Tencent Holdings Ltd. would pay USD2.34 billion to acquire shares in the company which was also held by the French firm. According to court filings, the sale would reduce Vivendi's stake from 61% to 12%.
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