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 of making as much money as possible. The practice is illegal in the US
Diller has described himself as a “long term friend”[ads1]; 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.
Activision Blizzard Lawsuit Timeline: The Story So Far
