US Authorities Investigate Bobby Kotick Over Alleged Insider Trading

thegamer.com:

Bobby Kotick is being investigated over alleged insider trading, surrounding the recent Microsoft acquisition deal. Kotick is accused of providing three individuals with information about the deal before it was made public, allowing them to invest in Activision Blizzard just before it was announced for personal gain.

Businessmen Alexander von Furstenberg, Barry Diller, and David Geffen all purchased shares in Activision Blizzard on January 14. This was just four days before Microsoft revealed that it would be acquiring the gaming giant, resulting in a $59 million profit for the trio. Kotick met with von Furstenberg before the purchases were made, and it's this meeting that is central to the investigation being conducted by the US Justice Department.

Related: Bobby Kotick Should Have Been Forced Out Of The Gaming Industry Years Ago

The investigation was uncovered by the Wall Street Journal, which learned from sources that Bobby Kotick is yet to be interviewed by law enforcement. The Justice Department declined to comment on the status of the investigation, but the Wall Street Journal reports that it is concerning alleged breaches of insider trading law on Kotick's part.

Barry Diller - founder of the Fox Broadcasting Company, and von Furstenberg's stepfather - has defended Kotick from these allegations of inside trading breaches. He further described the controversial CEO as a "sophisticated professional". He says his meeting with von Furstenberg was a "social breakfast", and one that was apparently disclosed to authorities by von Furstenberg himself.

Activision commented on the case in the report, denying any wrongdoing. "Mr. Kotick had a social brunch with his friends at a popular restaurant", a spokesperson said to