The Wall Street Journal reports
(may require registration or subscription) that a probe is underway to determine
if some stock trades by Barry Diller, Alexander von Furstenberg, and David
Geffen were actually insider trading, rather than lucky timing. How could the
trio have come by alleged insider details? Well, Barry Diller and Activision CEO
Bobby Kotick served for years together on the Coca Cola board, Geffen is a
lifelong friend of Diller, and von Furstenberg is Diller's stepson, so it's a
pretty tidy setup.
has details for those without subscriptions:
January, the men spent more than $100m on Activision stock options priced at
just $40/share, underneath the company's then $63 price. In effect, they were
already making a profit.
Four days later, on 18th February, Activision announced it was being bought in a
deal worth $95/share. If and when this deal is ratified, the men stand to make
more than $100m in profit.