Shareholder sues Activision Blizzard over Vivendi Buyout
It seems like Vivendi might not be able to sell off its shares as easily as it hoped. An Activation Blizzard shareholder submitted a complaint saying the buyout is a conflict of interest. Last week Activision Blizzard announced that Vivendi was selling a majority of its shares to the publisher as well as an investment group led by the CEO Bobby Kotick and Co-Chairman Brian Kelly.
The shareholder Todd Miller, argues a “breach fiduciary duties, waste of corporate assets and unjust enrichment”.
If the deal was to go through then the investment group would be Activision Blizzard’s largest shareholders. Todd Miller claims that 6 of the 11 board members have close ties to Vivendi, where many of the them were once executives.
There was no apparent business purpose in allowing the insider investor group to participate in the discounted stock offering, other than to aggrandize defendants Kotick and Kelly and provide billions of dollars’ worth of Activision stock to the insider investor group at a discounted price.
Activision is the largest publisher in the US, and has generated a revenue of over one billion dollars in the last four of the past five financial quarters.
Via: Gamesindustry
Source: Courthouse News Service
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