The dust has finally settled on Microsoft's record-breaking buyout of Activision Blizzard, and as expected more than a few investigations are being conducted regarding the finer details of the deal. The latest investigation now relates to some Activision Blizzard investors possibly being involved in insider trading.
Early last month, the US Federal Trade Commission began investigating the Microsoft Activision Blizzard buyout. This was owing to the fact that if the FTC suspected that the acquisition could harm the possibility of fair competition, it could have blocked the deal from taking place. Thankfully for Microsoft, this has not been the case thus far, as even after the acquisition took place, the company would sit in third place in the video game industry value hierarchy behind Sony and Tencent.
Now it seems as though three Activision Blizzard investors are being investigated for insider trading relating to Microsoft's Activision Blizzard buyout. According to a Wall Street Journal report, Barry Diller, Alexander von Furstenberg, and David Geffen have now come under the microscope after investing $108 million in Activision Blizzard only a few days before Microsoft's buyout. The investors allegedly have ties to Activision Blizzard CEO Bobby Kotick, and if it turns out the investors were privy to the buyout before it took place, there may be serious legal implications for them.
-1.jpg?q=50&fit=crop&w=1500&dpr=1.5)
Diller informed the Wall Street Journal the investment was merely a lucky bet and that it was just a coincidence that it took place before the proposed Microsoft acquisition. There is currently no evidence to prove the possibility of insider trading, however, the investigation is likely to continue.
While Bobby Kotick is set to receive a hefty payout from the acquisition, not all of the Activision Blizzard shareholders seemed to be in favor of the buyout. Some of the company's shareholders decided to file a lawsuit in the hopes that it would stop the acquisition from taking place. The grounds for the suit seem to be that some shareholders feel that the company's sale plan is unfair as it seems to only benefit the board of directors who will receive significant and immediate benefits from the acquisition.
Last month, information also came to light that stated Microsoft's acquisition talks began three days after Activision Blizzard's toxic workplace report came out. Microsoft seemingly smelled blood in the water and decided to capitalize on Activision Blizzard's lower share price when it made the decision to acquire the company.
Source: The Wall Street Journal