DealLawyers.com Blog

Here’s news from Steven Haas of Hunton & Williams:

Yesterday, the Delaware Supreme Court ruled from the bench and reversed the Chancery Court in the Activision Blizzard litigation. As previously reported on this blog, the Court of Chancery enjoined a transaction last month in which Activision Blizzard was to repurchase shares and certain tax assets from its controlling stockholder. The Court of Chancery ruled that the transaction was a “merger, business combination or similar transaction” under the company’s certificate of incorporation that required stockholder approval.

The Delaware Supreme Court’s unanimous order reversing the lower court’s decision stated that “there is no reasonable possibility of success on the merits” and that the “Stock Purchase Agreement here contested is not a merger, business combination or similar transaction.” It also indicated that a written opinion would follow.