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The purchase of Microsoft Activision Blizzard supposedly leads to an investigation of privileged information abuse

Microsoft-Activision Blizzard Deal Will Be Investigated By the FTC - IGN Now

When Microsoft announced its intention to buy Activision Blizzard on January 18, the price of shares of the Call of Duty editor experienced a significant increase. According to the report of the Wall Street newspaper, the Department of Justice and the Bag and Values ​​Commission are investigating Barry Diller, David Geffen and Alexander Von Furstenberg, a trio that bought important actions options for Activision Blizzard on January 14. Apparently, the options were purchased at JPMorgan Chase around $ 40 per share, when the stock price was around $ 63. The price is now around $ 80, which would put your current profit at around $ 60 millions. Speaking with The Wall Street Journal, Diller confirmed that the trio has spoken with the regulators, but affirmed that there was no privileged information traffic.

“It was just a fortunate bet,” said Diller to The Wall Street Journal. “We do not act based on information from any kind of any1. It is one of those coincidences ».

Diller continued saying that Von Furstenberg, the stepson of him, had previously bought Activision Blizzard actions and believed that the company would sell in the near future or privatize. The Wall Street Journal did not receive comments from von fustenberg. However, Diller has a prerequisite with the CEO of Activision Blizzard, Bobby Kotick. The two men served on the board of directors of Coca-Cola, and Diller called Kotick “a long time”. The newspaper estimates that Diller, Geffen and Von Furstenberg spent 108 million dollars for the right to buy 4.12 million Activision Blizzard shares.

Microsoft’s intention to buy Activision Blizzard was a great hit for the videogame industry. If the agreement is concretized next year, it will put several important franchises under the Xbox umbrella. Microsoft has confirmed its intentions to maintain the Call of Duty franchise on PlayStation platforms, and possibly even take the Nintendo Switch series as well. However, the huge catalog of Activision Blizzard games would be a great boost for Xbox Game Pass, and the measure could generate a renewed interest in some inactive franchises. Many people can earn a lot of money with the deal, including Diller, Geffen and Von Furstenberg.

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