High-tech

Oracle: Billionaire Ellison is set to cash in 7.5 billion

The chairman of the group that owns around 40 per cent of Oracle’s shares is set to sell 50 million shares

FILE PHOTO: A logo of cloud service provider Oracle is seen at the company's offices at Eastpoint Business Park, Dublin, Ireland October 18, 2021. Picture taken October 18, 2021. REUTERS/Tom Bergin/File Photo REUTERS

1' min read

Translated by AI
Versione italiana

1' min read

Translated by AI
Versione italiana

Billionaire Larry Ellison is set to pocket nearly 7.5 billion dollars, whilst his subsidiary Oracle has increased the scale of its planned staff cuts, as it faces a liquidity crisis linked to the development of large-scale data centres for artificial intelligence projects.

Ellison’s programme

The company has also announced a new share trading programme for its chairman, Larry Ellison, who owns around 40 per cent of Oracle’s shares. The plan, adopted on 22 June, allows Ellison to sell 50 million shares by 24 October, as stated by the company in a document filed with the regulatory authorities. The shares closed at $175.07 on 22 June – worth $8.75 billion for 50 million shares – and have since fallen by 16 per cent by Friday’s close.

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Family commitments

Ellison was one of the main financiers behind his son David’s acquisition of Paramount Global last year and the $110 billion bid made by David Ellison’s Paramount Skydance Corp. for Warner Bros. Discover Inc.

Oracle’s reorganisation

The cost of Oracle’s staff cuts, which the company refers to as the “2026 Restructuring Plan”, is now estimated at around $2.8 billion, consisting largely of severance pay for redundant staff, according to the document. Oracle has already set aside around $2.1 billion for costs related to the plan, and the $700 million increase reflects “further actions we expect to take”, the company said.

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