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What: Video game giant Activision Blizzard (NASDAQ: ATVI) announced late Wednesday that a U.S. Court has delayed its $8.2 billion deal to split from parent company Vivendi.
So what: In late July, Vivendi agreed to sell most of its stake in Activision right back to it and an investor group led by CEO Bobby Kotick, but the Delaware Chancery Court's decision raises the small possibility that the transaction won't go through. Specifically, the Court sided with a suing shareholder, who argued that the reverse spinoff should be subject to a vote, putting the deal's fate in shareholder hands, and possibly delaying the process significantly.
Now what: Both Activision and Vivendi are still very eager to close the transaction. "Vivendi and Activision Blizzard remain committed to a swift conclusion of the transaction and are considering all options with their lawyers in light of the Court's order," said the companies in a statement. Of course, when you couple the very-muted reaction in Activision shares today with the many accretive benefits of the transaction, I'd expect shareholders to approve the deal overwhelmingly.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard. The Motley Fool owns shares of Activision Blizzard. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.