Larry Ellison cancels sale of shares worth $7.5 billion
Oracle founder Larry Ellison canceled a plan to sell 50 million shares worth $7.5 billion, just one day after it was disclosed in a regulatory filing. The company stated that no shares were actually sold. The cancellation comes amid a 23% decline in Oracle's stock this year, massive spending on artificial intelligence infrastructure, and total debt of $125 billion.
Oracle founder Larry Ellison canceled a plan to sell 50 million shares of the company worth approximately $7.5 billion. The surprising cancellation came just one day after a regulatory filing revealed that Ellison had adopted a pre-defined trading plan. In an official statement from Oracle, it was stated that no shares were actually sold before he decided to reverse course, and that he has no other plans to sell shares in the future. The company did not provide an explanation for the decision. The decision comes during a challenging period for Oracle's stock, which has lost more than 23% of its value since the beginning of the year. Meanwhile, the company is investing enormous sums in building data center infrastructure for artificial intelligence. Oracle's capital expenditures reached $55.7 billion in fiscal year 2026, leading to negative free cash flow of $23.7 billion. To fund operations, the company plans to raise approximately $40 billion more, while its total debt stands at $125 billion. Despite the heavy spending, business operations are showing growth thanks to demand for new technology. In the last quarter, the company reported cloud infrastructure revenues that more than doubled, surging 121% to $7.4 billion. Total revenue grew by 30% to $19.35 billion. The company raised its annual revenue forecast for fiscal year 2027 to at least $90 billion. A huge portion of Ellison's wealth, estimated at around $200 billion, is tied to his holdings in Oracle. He holds more than 40% of the company's shares. A financial analysis by the Wall Street Journal revealed that about 24% of his personal wealth is pledged as collateral for credit. At the same time, Ellison has committed to investing more than $40 billion of his personal fortune to finance his son David Ellison's attempt to take over Warner Bros. Discovery in a deal valued at nearly $80 billion, which is facing legal challenges.