(Reuters] – U.S. Federal prosecutors, securities regulators, and Alexander von Furstenberg are currently investigating large bets Barry Diller, Alexander von Furstenberg, and David Geffen placed on Activision Blizzard Inc. (NASDAQ) shares in January. These were days before Activision Blizzard agreed to acquire the videogame maker. Microsoft Corp The Wall Street Journal published Tuesday’s report (NASDAQ:).

Diller is the Chairman of IAC. His stepson von Furstenberg and the music mogul Geffen are estimated to have a profit of approximately $60 million in the option trade. The report is based upon the Activision share price at around $80.

According to the report, the Justice Department is currently investigating whether options trades were in violation of insider trading laws. The Securities and Exchange Commission (SEC), is also conducting an independent civil investigation into insider trading.

Diller stated to Reuters that they had no knowledge of a possible acquisition by Microsoft of Activision. He also said that the decision was based on Activision’s undervaluation and the possibility of it being privatized or acquired.

“If we had any such information we would never have traded on it – it strains credulity to believe we would have done so three days before Microsoft and Activision made their announcement,” he added in a statement.

Spokespeople for the Justice Department, the SEC and Geffen did not reply to Reuters’ requests for comment. Von Furstenberg was unable to be reached immediately.

Microsoft bought Activision, the maker of “Call of Duty”, for $68.7 Billion in January in one of the largest gaming industry deals in history.