On Friday, The Washington Free Beacon reported the following:
Federal authorities are investigating three Democratic megadonors who made an enormous bet on shares of Activision Blizzard just days before Microsoft agreed in January to acquire the video game company for $69 billion.
The U.S. Justice Department and the Securities and Exchange Commission are both looking into the suspiciously timed trading activity of Barry Diller, owner of the Daily Beast, his stepson Alex von Fürstenberg, and his friend David Geffen, a longtime Democratic donor who gave $500,000 to the scandal-plagued Lincoln Project in 2020.
…The Journal (The Wall Street Journal) notes that Activision stock options similar to those purchased by Diller, Geffen, and von Fürstenberg were “sparsely traded” in the days before the Microsoft acquisition was announced, but “exploded” in response to the news. The wealthy Democrats’ stock options instantly surged in value by more than 60 percent—an amazing coincidence, indeed.
The men have yet to exercise their options, which don’t expire until 2023. They could realize a profit of about $60 million if they sold today, based on Activision’s current share price of $80. They stand to make more than $100 million if the Microsoft acquisition, expected to close this summer, goes forward at the agreed-upon price of $95 per share.
What better way to ensure generous donations than to help those donors make money in the stock market? Is this an incredible coincidence as those involved claim?