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Investors Sue Activision Over Blizzard Merger

An Activision investment group has filed a lawsuit against the company, arguing that directors failed to obtained the best possible deal in the recent merger with Vivendi Games/Blizzard – reducing shareholders to an “unfavorable minority position”.

David Jenkins

February 27, 2008

1 Min Read

An Activision investment group has filed a lawsuit against the company, arguing that directors failed to obtained the best possible deal in the recent merger with Vivendi Games/Blizzard – reducing shareholders to an “unfavorable minority position”. According to a Bloomberg News report, the Wayne County Employees’ Retirement System has filed a complaint in Delaware Chancery Court, in Wilmington. It claims that Vivendi’s 52 percent ownership of the combined Activision Blizzard company disadvantages Activision shareholders. French owned company Vivendi is set to pay $1.7 billion in cash for the majority stake in Activision Blizzard, which will offer to buy back as much as $4 billion in shares at a price of $27.50 each. "The merger, stock purchase and tender offer, working in concert, convey control of Activision to Vivendi but fail to offer the Activision stockholders an opportunity to realize a true control premium for their stock," said lawyers.

About the Author(s)

David Jenkins

Blogger

David Jenkins ([email protected]) is a freelance writer and journalist working in the UK. As well as being a regular news contributor to Gamasutra.com, he also writes for newsstand magazines Cube, Games TM and Edge, in addition to working for companies including BBC Worldwide, Disney, Amazon and Telewest.

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