On March 9, 2022, The Wall Street Journal reported that David Geffen, media executive Barry Diller, and Diller’s stepson Alex von Furstenberg were being investigated by the U.S. Securities and Exchange Commission and the Department of Justice over options trades in Activision Blizzard made only three days before Microsoft publicly announced its plan to acquire the video-game company. The timing raised obvious insider-trading questions because a takeover announcement can sharply increase the value of relevant options. Diller denied wrongdoing and characterized the transaction as simply a lucky bet. The episode remained an investigation and allegation rather than an established criminal conviction, but it placed one of Hollywood’s most powerful dealmakers under scrutiny in a financial controversy far removed from his record-label and film-studio empire.
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AI concept artworkArchive Record · 2020s
The Activision Blizzard Options Bet That Drew an SEC and DOJ Investigation
David Geffen, Barry Diller, and Activision Blizzard / 2020s
On March 9, 2022, The Wall Street Journal reported that David Geffen, media executive Barry Diller, and Diller’s stepson Alex von Furstenberg were being investigated by the U.S. Securities and Exchange Commission and the Department of Justice over options trades in Activision Blizzard made only three days before Microsoft publicly announced its plan to acquire the video-game company. The timing raised obvious insider-trading questions because a takeover announcement can sharply increase the value of relevant options. Diller denied wrongdoing and characterized the transaction as simply a lucky bet. The episode remained an investigation and allegation rather than an established criminal conviction, but it placed one of Hollywood’s most powerful dealmakers under scrutiny in a financial controversy far removed from his record-label and film-studio empire.
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