Photo by Jae C. Hong via AP Photo
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The United States government is reportedly investigating three individuals on suspicion of insider trading following the purchase of options on Activision Blizzard days before it was announced that the company would be acquired by Microsoft.
According to The Wall Street JournalCiting “people familiar with the matter,” Barry Diller, Alexander von Furstenberg, and David Geffen all bought big options at $40 each in the days leading up to the announcement, while the stock price hovered around $63 before its jump to $80 now.
The report states that the three investors would have profited from around $60 million from their options purchased on January 14. However, this number could continue to rise as men have yet to execute them and they will not expire until 2023.
There are two ongoing investigations into the matter simultaneously. The Justice Department is investigating whether the option trades violated any insider trading laws, along with a civil insider trading investigation by the Securities and Exchange Commission.
speaking to WSJDiller claims that neither he nor the other two men had prior knowledge of Microsoft’s plans to acquire Activision Blizzard, calling it “one of those coincidences.”
According to Diller, Mr. von Furstenberg, who is his stepson, had been buying shares of Activision-Blizzard before January 14, believing that the company would “go private or be acquired at some point.”
The investigation comes after JPMorgan Chase, who facilitated the private transactions, reported them to law enforcement after the Microsoft acquisition was announced on January 18.
Microsoft’s acquisition of Activision Blizzard is reported to cost the company $68 billion, or $95 per share if it goes through as planned.
The sale came after multiple allegations of workplace misconduct and sexual harassment at the company sent the stock price down in the final months of 2021.
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Reference-wegotthiscovered.com
