Prosecutors looking into meeting between Activision CEO and options traders: report (update)
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Update 5:25pm: Adds statement from Bobby Kotick.
Members of the Department of Justice are looking into a meeting between Activision Blizzard (NASDAQ:ATVI) Chief Executive Bobby Kotick and one of the three options traders before Microsoft (NASDAQ:MSFT) announced it was buying the video game maker for approximately $69 billion.
The meeting, first reported by The Wall Street Journal, took place the week before January 14 and was included Kotick and Alexander von Furstenberg, the stepson of media mogul Barry Diller and the son of his wife, fashion designer Diane von Furstenberg.
The three men bought call options on Activision (ATVI) for $40, when shares were trading at roughly $63, meaning the options were in the money.
Just days later, Microsoft (MSFT) agreed to buy Activision (ATVI) for $95 per share in cash, paying almost $69 billion.
It was previously reported that the three men spent approximately $108 million on the options, and have an unrealized profit of roughly $60 million. 
If the deal closes, they would be worth more, as Activision (ATVI) is currently trading at a significant discount to the proposed purchase price.
Diller, who previously said the trade was "simply a lucky bet" and that the men "acted on no information of any kind from anyone," continued to defend himself. On Thursday, in an email to The Journal, Diller said the men had no knowledge of the deal and if they did, would not have proceeded.
"We had zero knowledge of that transaction and it belies credulity to think that if we did we would have proceeded," Mr. Diller wrote. "Itâs equally unlikely to believe Mr. Kotick, a sophisticated professional, in a social breakfast with Mr. von Furstenberg and his wife would have told them of the pending transaction."
Alexander von Furstenberg previously disclosed his meeting with Kotick to law enforcement who questioned him about the trade.
Kotick's representatives released a statement to CNBC on the meeting.
"Mr. Kotick had a social brunch with his friends at a popular restaurant," according to the statement. "He of course didn't share any information with them regarding a possible transaction with Microsoft."
It was previously reported that J.P. Morgan reported the trades to regulators and prosecutors after the deal was publicly announced. 
Separately on Thursday, a letter written by four U.S. senators to the Federal Trade Commission asked the agency to give a hard review to Microsoft's (MSFT) proposed Activision Blizzard (ATVI) acquisition, citing the videogame maker's issues with employee misconduct.