Feds Probing Barry Diller & David Geffen Over Trades Ahead Of Microsoft-Activision Blizzard Merger
deadline.comThe U.S. government wants a word with Barry Diller, David Geffen and a third man involving the planned $68.7 billion merger of Microsoft and Activision Blizzard.Federal securities regulators and prosecutors are investigating options trades made by longtime Hollywood players Diller and Geffen and Diller’s stepson Alexander von Furstenberg, according to a Wall Street Journal report tonight.
Citing sources, the paper said the trio made roughly $60 million based on Activision’s roughly $80 recent share price.WSJ notes that Diller, Geffen and businessman von Furstenberg bought options to acquire shares in Activision at $40 apiece, when the video game developer and publisher’s stock was trading at about $63.
Translation: The options already were profitable to exercise, and option holders could reap more if Activision’s stock price rose.The Wall Street Journal wrote that Justice Department is probing whether any of the men’s deals broke insider-trading laws, and the SEC is looking at a civil case along the same lines.
The feds would not comment to WSJ on the matter.Diller, who confirmed that he is under investigation by DOJ, told WSJ that none of the three men had private information about the looming merger. “It was simply a lucky bet,” he told the paper. “We acted on no information of any kind from anyone.
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