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

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

www.ign.com

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.

 

[Draugoth]

Someone explain this to the dumb me, does this mean that the deal could not pass on?

 

[Swift_Star]

There’s way more heat over this deal than Disney and Fox. Interesting to say the least.

 

[Mr Moose]

Sneaky little fuckers, though not sneaky enough.

 

[Hugare]

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?

 

[Kacho]

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

 

[Banjo64]

Someone explain this to the dumb me, does this mean that the deal could not pass on?

No, it means that 3 people had knowledge of the deal before it was announced and illegally profiteered on it. I’m guessing those 3 individuals will be fucked if the case against them is strong, alongside anyone who’s passed on information.

 

[Max_Po]

Someone explain this to the dumb me, does this mean that the deal could not pass on?

Insider trading is illegal.

 

[Punished Miku]

Someone explain this to the dumb me, does this mean that the deal could not pass on?

No. Just means that these investors could get busted. An investigation could possibly track down the source of the info also.

 

[AJUMP23]

Insider trading is illegal.

Unless you are a member of congress.

 

[Dodo123]

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

 

[PSFan]

Unless you are a member of congress.

I was going to make that exact reply, lol.

 

[anthony2690]

Anyone get the feeling it is Bobby that tipped them off?

 

[SlimySnake]

Someone explain this to the dumb me, does this mean that the deal could not pass on?

This has nothing to do with microsoft. Or even Activision. The only people who might get in trouble are Bobby Kotick and these investors and rich people typically get a slap on the wrist for this stuff.

 

[jaysius]

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]

Ahaha capitalism! Rich people think they are smart! They got caught, then get away with a slap on the wrist!

 

[LeftThumbstick]

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.

 

[Bladed Thesis]

Ahaha capitalism! Rich people think they are smart! They got caught, then get away with a slap on the wrist!

Because that only happens in capitalism...

 

[HeisenbergFX4]

 

[Zeroing]

Because that only happens in capitalism.

Yeah?

 

[Imtjnotu]

Love how the FTC allows congressman and senators to do this but not your average person

 

[CatLady]

Let's take a vote:
Who here thinks Bobby was the one that tipped his buddies off?

 

[DeepEnigma]

Insider trading is illegal.

Edit: beaten

 

[adamsapple]

The deal isn't being investigated, 3 of the investors are:

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

 

[LOLCats]

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!

 

[NickFire]

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.

 

[BoxFresh123]

 

[thicc_girls_are_teh_best]

Ruh-roh

Let's take a vote:
Who here thinks Bobby was the one that tipped his buddies off?

That's probably the safest bet of the century.

I know you said 'vote' but I wanted to say something else and my mind was set on it.

 

[itsjustJEFF]

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.

 

[Negotiator101]

Love how the FTC allows congressman and senators to do this but not your average person

Average person?

 

[UniformDeliverance]

Meanwhile.. Members of the US House and Senate can still trade on the market...

 

[Badlucktroll]

I bet MS is going to back out, and Activision Blizzard will die.

 

[Unknown?]

Ahaha capitalism! Rich people think they are smart! They got caught, then get away with a slap on the wrist!

The US isn't a capitalist economy. Pseudo capitalism at best but it's actually a form of interventionist corporatism.

 

[Withnail]

Precisely why any Twitter "insider" claiming to have acquisition news is full of shit.

 

[Lupin3]

Hopefully the investigators investigating the investors are invested enough.

 

[Cyberpunkd]

Someone explain this to the dumb me, does this mean that the deal could not pass on?

No, but the three idiots will have problems.

 

[Cyberpunkd]

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.

 

[oldergamer]

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!

 

[oldergamer]

All this stuff coming out has got to piss off MS. More reason to let Kotic go after the deal is done.

 

[Tommi84]

No, it means that 3 people had knowledge of the deal before it was announced and illegally profiteered on it.

So you mean they were already convicted?

 

[Banjo64]

So you mean they were already convicted?

No;

Three investors are being investigated

 

[Unknown?]

It's obvious they got their information from Tidux, the Twitter insider. He's got sources man!

 

[Tommi84]

No;

then why you wrote:

had knowledge

and

illegally profiteered

as if this was already confirmed? You don't know that. Investigators doesn't know this YET.