Delaware Supreme Court Overturns Chancery Court's Injunction of Vivendi/Activision Blizzard Deal | Practical Law

Delaware Supreme Court Overturns Chancery Court's Injunction of Vivendi/Activision Blizzard Deal | Practical Law

The Delaware Supreme Court reversed the Delaware Court of Chancery's preliminary injunction of the Vivendi/Activision Blizzard deal.

Delaware Supreme Court Overturns Chancery Court's Injunction of Vivendi/Activision Blizzard Deal

by Practical Law Corporate & Securities
Published on 10 Oct 2013 • Delaware
The Delaware Supreme Court reversed the Delaware Court of Chancery's preliminary injunction of the Vivendi/Activision Blizzard deal.
The Delaware Supreme Court has reversed the decision of the Delaware Court of Chancery to preliminarily enjoin the closing of Vivendi, S.A.'s sale of a portion of its stake in Activision Blizzard Inc. The opinion on the Chancery Court, which held that the sale in question constituted a "business combination" that required a vote under Activision Blizzard's certificate of incorporation, is summarized in Legal Update, Delaware Court of Chancery Halts Closing of Vivendi/Activision Blizzard Deal Pending Stockholder Vote.
In the words of the Supreme Court's order:
[T]he Court unanimously concludes that the Court of Chancery’s judgment must be REVERSED. We hold that there is no reasonable possibility of success on the merits. The Stock Purchase Agreement here contested is not a merger, business combination or similar transaction. An Opinion will follow in due course.
Practical Law will publish an update on the Supreme Court's opinion when it is issued.
The ruling clears the way for the $8.2 billion deal to close by its deadline of Tuesday, October 15.