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Three businessmen with links to CEO Bobby Kotick bought $108 million worth of Activision Blizzard shares four days before Microsoft acquisition

riotous

riotous

Member
Oct 25, 2017
11,390
Seattle
So Diller is on the board at Coca-Cola w/ Kotick (who left that board a few days ago) and then he goes and tells Geffen who is married to a von Furstenberg?

Kotick seems like the kind of rich idiot to do this kind of thing too; "hey BTW buy some stock in Activision".. like any of these rich fucks really need this shit either.

Devi's advocate though would be... Activision stock was heavily undervalued, hence why MS swooped in to buy them in the first place, and was bound to go up.
 
Cygnus X-1

Cygnus X-1

Member
Oct 28, 2017
971
I am not surprised they did it.

I am surprised they are getting caught and did not cover it up
 
Ont

Ont

Prophet of Truth
Member
Oct 29, 2017
2,057
Cow Mengde said:
And you think these people will face consequences because... ?
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If it will be deemed as insider dealing after the investigation they will be prosecuted.

But there are defences under insider dealing rules. If it was a lucky bet with no inside information being given or used, then it is not criminal activity.
 
Garulon

Garulon

Member
Jul 22, 2020
782
FrostweaveBandage said:
They would have to prove that Kotick directly provided this information to the shareholders, and that he knew what he was doing was illegal.

And then someone would have to have the gumption to actually indict.
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Agree on the first and last parts but would he *have to know* insider trading was illegal? He would have lawyers specifically telling him this during the aquisition process and emails saying "don't say anything about this to anyone" that will have flagged him as having read it
 
T002 Tyrant

T002 Tyrant

Member
Nov 8, 2018
9,095
Until someone can provide anything that isn't circumstantial, there's no legal consequences for these people.
 
Jakartalado

Jakartalado

Member
Oct 27, 2017
2,292
São Paulo, Brazil
You know.... we could get arrested in some countries by doing this. Inside trading is a federal crime here in Brazil (who I'm kidding.... no one with money gets arrested here in Brazil).
 
weekev

weekev

Is this a test?
Member
Oct 25, 2017
6,219
Surely Bobby Kotick wouldnt be guilty of aiding an insider knowledge crime? I heard the man was an absolute saint.
 
FrostweaveBandage

FrostweaveBandage

Unshakable Resolve
Member
Sep 27, 2019
6,897
Garulon said:
Agree on the first and last parts but would he *have to know* insider trading was illegal? He would have lawyers specifically telling him this during the aquisition process and emails saying "don't say anything about this to anyone" that will have flagged him as having read it
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Yes, conviction of financial crimes require intent. It's one of the reasons why it's so hard to convict. Martha Stewart's conviction, for example, hinged on testimony that she told a friend she could get in trouble if the word got around that she knew certain info.

Here's an example. You work for a publicly-traded company that makes orange juice. You get word that the orange crop is going to be especially bad this year, but this is not yet public knowledge. You're talking to a friend who owns stock in the company, and you mention that you're worried about your job because of the orange crop. That friend sells shares in your company trying to get ahead of the market. You would be unlikely to be indicted because even though you divulged information not yet known to the market, you weren't intending to profit or allow someone else to profit off that information. Or if you were saying that with that intent it would be difficult to prove.

Now, your company would be very unhappy with you if they found out, because share sales cause stock price to drop which harms investor confidence. But it would not be illegal as far as the letter of the law is concerned.
 
zashga

zashga

Losing is fun
Member
Oct 28, 2017
4,237
This would be huge if the SEC was worth a damn. In a just world these three and Bobby would all end up in prison. Instead they'll either skate or pay a piddling fine while admitting no wrongdoing.
 
PAFenix

PAFenix

Unshakable Resolve
Member
Nov 21, 2019
14,934
Regular folks messing with Gamestop via Robin Hood: We must investigate and freeze the app! Regulatioooons!!!!!

This: *Crickets*
 
Dyle

Dyle

One Winged Slayer
The Fallen
Oct 25, 2017
30,122
PAFenix said:
Regular folks messing with Gamestop via Robin Hood: We must investigate and freeze the app! Regulatioooons!!!!!

This: *Crickets*
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? This is being investigated, that's why this article exists, if they had insider info then it was very illegal. RH's app froze because they're a shitty vc tech company that didn't have enough in the bank to meet regulatory requirements.
 
PAFenix

PAFenix

Unshakable Resolve
Member
Nov 21, 2019
14,934
Sheepinator said:
Did you even read the OP? They are being investigated.
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Dyle said:
? This is being investigated, that's why this article exists, if they had insider info then it was very illegal. RH's app froze because they're a shitty vc tech company that didn't have enough in the bank to meet regulatory requirements.
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It was a bad attempt at a joke in regards to actual consequences. Glad they're being looked into at least.
 
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SquirrelSr

SquirrelSr

Member
Oct 26, 2017
6,044
Rich people only face consequences when they mess with other rich people. So let's see what happens next.
 
Sheepinator

Sheepinator

Member
Jul 25, 2018
28,165
Guaraná said:
Bobby Kotick going down for insider trading instead of all the horrible shit he did as a boss is the most American way this thing could go
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Not much chance. They'd have to prove Kotick tipped them, which will probably be difficult, and that Kotick expected to profit from that tip, which will be even more difficult. And even if that all came to pass, he's probably retiring this year anyway, or at least that's how they'd present it, so banning him from C-level positions would be toothless.
 
Host Samurai

Host Samurai

Member
Oct 27, 2017
12,235
Sheepinator said:
Not much chance. They'd have to prove Kotick tipped them, which will probably be difficult, and that Kotick expected to profit from that tip, which will be even more difficult. And even if that all came to pass, he's probably retiring this year anyway, or at least that's how they'd present it, so banning him from C-level positions would be toothless.
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I doubt he left a paper trail as he probably tipped them in person.
 
Thera

Thera

Banned
Feb 28, 2019
12,876
France
It's funny how rich people are either lucky or hardworker (narrotor : there aren't any of these) depending of what suits them.
 

Deleted member 10780

User requested account closure
Banned
Jan 16, 2022
1,366
I don't think close ties are enough. If they don't have any hard evidence nothing will happen. I mean they're rich so nothing is gonna happen anyway
 
KeRaSh

KeRaSh

I left my heart on Atropos
Member
Oct 26, 2017
10,338
It's pretty obvious what happened here but I always wondered how these things actually play out.
If there is evidence of them sending, receiving and acting on the insider info (emails, text messages, etc.) it's pretty clear, but how does the SEC decide whether something was actually insider trading if the is no tangible evidence? How often does it happen that someone actually makes an educated but lucky guess and the SEC just crashes your party?
 
Sho_Nuff82

Sho_Nuff82

Member
Nov 14, 2017
18,525
I give it about 48 hours before there's High Definition video of Kotick having lunch and drinks with all 3 gentlemen at the same time, hours before their stock purchases.
 

bes.gen

Member
Nov 24, 2017
3,435
seeing how recklessly it was done,
pretty safe to assume they are sure nothing will happen.
 
Sheepinator

Sheepinator

Member
Jul 25, 2018
28,165
AndrewDean84 said:
Who's the victim here? I know this move is super scummy and likely illegal, but I'm only asking because I don't know.
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For one thing, it's a breach of the execs fiduciary duty to the company and shareholders. If they're cavalier with this, what else are they doing?

The other thing is markets are supposed to be fair for everyone, with equal access to material information. Things like this can erode confidence in the market.
 
Dyle

Dyle

One Winged Slayer
The Fallen
Oct 25, 2017
30,122
KeRaSh said:
It's pretty obvious what happened here but I always wondered how these things actually play out.
If there is evidence of them sending, receiving and acting on the insider info (emails, text messages, etc.) it's pretty clear, but how does the SEC decide whether something was actually insider trading if the is no tangible evidence? How often does it happen that someone actually makes an educated but lucky guess and the SEC just crashes your party?
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If the SEC does not locate any written evidence or testimony indicating the investors knew any privileged information then there is no insider trading case to be made.
 
Bansai

Bansai

Teyvat Traveler
Member
Oct 28, 2017
11,402
Yes, and those co-workers accidentally crawled under women's desks.
 
Merv

Merv

Member
Oct 27, 2017
6,472
RoKKeR said:
"They said with shit-eating grins on their faces"
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zkxxBsi.gif
 
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