A securities filing by Activision Blizzard shows that the company is cooperating with federal investigations into trading by friends of its CEO shortly before its disclosure of its sale to Microsoft Corp.
In an amended proxy filing with the SEC, Activision said, it had received a subpoena from a Department of Justice grand jury; it also said, it had received requests for information from the U.S. Securities and Exchange Commission.
These requests “appear to relate to their respective investigations into trading by third parties – including persons known to Activision Blizzard’s CEO – in securities prior to the announcement of the proposed transaction,” said Activision.
In January 2022, Microsoft agreed to acquire Activision for $95 a share, in a $68.7 billion deal that marked the biggest acquisition in the video-game industry to date.
Activision did not name the parties, nor did it say whether the grand jury subpoena was directed at any employee. Its filing also did not disclose when it received the subpoena or the SEC request for information.
Last month, a report by the Wall Street Journal said, Barry Diller, David Geffen, and Alexander von Furstenberg, had acquired share options after von Furstenberg met with Activision CEO Bobby Kotick days before it disclosed the sale to Microsoft.
“Activision Blizzard has informed these authorities that it intends to be fully cooperative with these investigations,” said the company.
The amended proxy filing that included the information on its cooperation with the SEC and DOJ comes in the wake of a shareholders lawsuit alleging omissions to a preliminary proxy on the sale.