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Report: Microsoft’s Activision Blizzard Deal Being Investigated for Insider Trading

kingfey

Banned

Three investors are being investigated for insider trading in relation to Microsoft's acquisition of Activision Blizzard.

The Wall Street Journal reports that Barry Diller, Alexander von Furstenberg, and David Geffen invested around $108 million in Activision Blizzard just days before Microsoft acquired the company and shares went up in value.

Their investment has climbed to $168 million and could be worth upwards of $200 million if they keep their shares until the Microsoft deal closes later this year.

The investments were made by privately arranged transactions through JPMorgan Chase & Co, who later reported the trades to law enforcement after the deal became public. This prompted the US Justice Department and the Securities and Exchange Commission to both open investigations into the matter.

Insider trading is the buying and selling of stocks with confidential or non-public information, usually with the intention to make as much money as possible. The practise is illegal in the U.S.

Diller has described himself as a "long term friend" of Activision Blizzard CEO Bobby Kotick and served on Coca-Cola's board of directors with him. Von Furstenberg is the stepson of Diller and Geffen is another long time friend.

Diller told The Wall Street Journal that none of the men had insider information about Microsoft's impending acquisition of Activision Blizzard and said it was just a coincidence and a "lucky bet".

While no insider trading has been proven, this is the latest in a long line of controversies surrounding Activision Blizzard in the last few months.

The company was sued by California over allegations of a "frat boy culture" that prompted a number of senior staff departures and partner companies taking a step back.
 

Kacho

Member
Yeah that’s a lot of money to invest with all the controversy surrounding the company.
 

Dodo123

Member
Bill's friend Warren Buffett and his recently purchased 1 bn USD stake at the Activision Blizzard say hello :)
 

jaysius

Member
When tons of money gets traded shit always leaks out of the woodwork. This is typical, big movers do move, people around get scared and start digging for any scrap they can find.
 

Zeroing

Banned
Ahaha capitalism! Rich people think they are smart! They got caught, then get away with a slap on the wrist!
 
This deal is the gift that keeps on giving

The acquisition is not even finished yet, and MS is already having lots of headaches with Activision

These fools really thought thay they could get away from something like this?
Going to need a source on the "lots of headaches" part because i feel like your just making up drama with that comment. This isn't really the deal being investigated, rather the individuals mentioned.
 
Shocked Futurama GIF
 

LOLCats

Banned
Not sure what positions they hold, but if executive leadership and those weren't prescheduled buys, they're done for and going to white-mans jail. Also ignorant AF!
 
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NickFire

Member
This deal is the gift that keeps on giving

The acquisition is not even finished yet, and MS is already having lots of headaches with Activision

These fools really thought thay they could get away from something like this?
People should really read before console warring. The actual issue itself has nothing to do with MS, at all.
 
Someone explain this to the dumb me, does this mean that the deal could not pass on?
Nah, won't affect it at all... that's the SEC's job.

Not surprised tho, this kind of shit happens all the time. Someone ALWAYS gets wind of news coming before it happens. It just seems like there's never any consequences for doing it... maybe this time something will happen.
 

Cyberpunkd

Member
Not surprised tho, this kind of shit happens all the time. Someone ALWAYS gets wind of news coming before it happens.
In this case they were actually snitched on by their own bank:
The investments were made by privately arranged transactions through JPMorgan Chase & Co, who later reported the trades to law enforcement after the deal became public.
Now if JP Morgan doesn't even want to touch that you know you fucked up big time.
 
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oldergamer

Member
Someone explain this to the dumb me, does this mean that the deal could not pass on?
It technically has nothing to do with the deal, other then to show a bunch of people kotic knows all bought stock days before the MS deal was announced. This wreaks of insider trading if you ask me. One of the guys is also on the Coke cola board with Kotic. Guaranteed that bastard tipped them off. they bought 108 million worth in stock!
 
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