Activision Blizzard investors investigated surrounding Microsoft acquisition
Three Activision Blizzard investors are being investigated for potential insider trading relating to the company's proposed acquisition by Microsoft.
The basics: The Wall Street Journal reports that Alexander von Furstenberg, Barry Diller, and David Geffen are the investors in question.
- The report states that the three men invested roughly $108M into Activision Blizzard just a matter of days before Microsoft announced its intentions to acquire the gaming company for $68.7B.
- It's reported that their investments rose to $168M following the announcement, considering shares climbing in value significantly, and could be valued at around $200M by the time the proposed deal is (presumably) closed.
- The investments were arranged through investment bank JPMorgan Chase, which went on to report the transactions to law enforcement once the Microsoft agreement was publicized, leading to the U.S Justice Department and Securities and Exchange Commission opening up investigations.
Also of interest → Microsoft's Activision Blizzard acquisition is bigger than you think
Insider trading? The phrase means to trade a public company's stock when you know information that's not available to the public.
- The timing of the investments is what's suspicious and has prompted the investigations, with Activision Blizzard's stock rising considerably following the historic proposed transaction value.
- Diller previously served on the board of directors for Coca-Cola with Activision Blizzard CEO Bobby Kotick and is the stepfather of von Furstenberg. Geffen has been described as "very close friends" with Diller by Kotaku.
- Speaking on his investment, Diller told the WSJ that "it was simply a lucky bet" and that they "acted on no information of any kind from anyone."