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Activision Blizzard set as video game maker Sold to Microsoft for $70 billionIn a legal filing Friday, the company said it would cooperate in an investigation into whether some of its investors had engaged in insider trading before the deal was announced.
The company said it received a request for information from the Securities and Exchange Commission, which enforces securities rules, and a grand jury subpoena from the Justice Department. The requests turned out to be related to investigations into whether investors who knew Activision CEO Bobby Kotick were insider selling Activision stock before the Microsoft deal was made public.
“Activision Blizzard has notified these authorities that it intends to fully cooperate with these investigations,” the company said in the filing.
Wall Street Journal In March, it reported that three investors were making plans to purchase major Activision stock a few days before the announcement, netting them nearly $60 million after the company’s stock price soared. The magazine reported that one of them met with Mr. Kotick a week before the three men bought the stock. The names of the investors were not mentioned in the filing.
Activision and the SEC did not immediately respond to requests for comment. The embattled gaming company that produces games like Call of Duty and Candy Crush has been under fire since last summer. An employment agency in California sued over allegations that it has a toxic, sexist workplace culture that has led to employee layoffs and the firing of some managers.
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