[Grisham]

The US Justice Department and SEC are investigating potential insider trading connected to Microsoft's $69bn buyout Activision, the Wall St Journal has reported, and specifically the large bets placed on stock by three men, just days prior to the deal becoming public.

On 14th January, the men spent more than $100m on Activision stock options priced at just $40/share, underneath the company's then $63 price. In effect, they were already making a profit.

Four days later, on 18th February, Activision announced it was being bought in a deal worth $95/share. If and when this deal is ratified, the men stand to make more than $100m in profit.

Who are these men? There's former chairman and CEO of 20th Century Fox Barry Diller, music mogul and Dreamworks co-founder David Geffen, and socialite Alexander von Furstenberg, son of German Prince Egon von Fürstenberg. The trio are now being investigated as to how they knew each other, and what they may have known of Activision being acquired.

However, various details are already public. For example, it's interesting to note that billionaire Diller has served alongside controversial Activision Blizzard boss Bobby Kotick for years as a board member at Coca-Cola.

Diller and Geffen have been lifelong friends, the WSJ reported, and previously worked together. As for von Fürstenberg - well, Diller is now married to his mum.

"It was simply a lucky bet," Diller told WSJ. "We acted on no information of any kind from anyone. It is one of those coincidences."

Microsoft and Activision declined to comment.

US probes possible insider trading in Activision Microsoft deal

The US Justice Department and SEC are investigating potential insider trading connected to Microsoft's $69bn buyout Act…

www.eurogamer.net

 

[Mickmrly]

Those options can make juicy returns if you get the right information.

 

[DonDonDonPata]

Hmmm interesting.

I think a lot of gamers who follow the industry were already smelling something sus when -- after months of SJW fueled controversy -- ActiBlizzard suddenly sold to Microsoft out of the blue.

In the case of a company like Bethesda, a lot of us were like "okay, yeah, they're poorly managed so this makes sense" but the purchase of ActiBlizzard and even the follow-up comments from Kotick didn't indicate the company was in trouble or needing a buyout to stay in the market.

 

[AJUMP23]

Those options can make juicy returns if you get the right information.

If I could know what the P&L is of a company before they release it, I would be an options winner all the time.

 

[Grinchy]

lol these guys won't face even a wrist slap, meanwhile they put Martha Stewart in jail

 

[Arkam]

Would be amazing to Geffen behind bars. He has been running his sex party yacht for years with no one batting an eye. Hell most Hollywood celebs brag about going on them.

 

[Grisham]

WSJ News Exclusive | U.S. Probes Meeting Between Activision CEO and Option Buyer

Authorities are looking into at least one meeting between Bobby Kotick, the chief of the videogame firm, and one of three traders who made a timely options trade just before a merger announcement.

www.wsj.com

Authorities investigating timely trading in Activision Blizzard Inc. securities are looking at at least one meeting between the videogame firm's chief executive and one of three traders days before they placed a large bet on Activision shares, according to people familiar with the matter.

Activision CEO Bobby Kotick met with Alexander von Furstenberg in the week before Mr. von Furstenberg and media moguls Barry Diller and David Geffen bought options to purchase Activision shares at $40 each on Jan. 14. The options trade, which has generated an unrealized profit of about $59 million, was arranged days before Activision agreed to be acquired for $95 a share by Microsoft Corp. , The Wall Street Journal has reported.

The Justice Department is investigating whether the options trade violated insider-trading laws, the people familiar with the matter said. The Securities and Exchange Commission is separately conducting a civil insider-trading investigation, the people said.