Oracle Founder Larry Ellison Plans Major Stock Sale

Oracle co-founder Larry Ellison, who has held onto his shares for decades, is preparing to sell up to $7.5 billion worth of the company's stock. A trading plan, adopted on June 22 and set to conclude on October 24, allows for the sale of up to 50 million shares. This move is significant because Ellison has historically sold very few shares, with total sales since the turn of the century amounting to no more than 25,000 shares at a time. Even if he sells the maximum allowed, he will retain over 40% ownership of Oracle, approximately 1.1 billion shares, maintaining his control.

Ellison, 82, co-founded Oracle in 1977 and has been a steadfast holder of its stock, which is now a major player in the artificial intelligence infrastructure race. The sale comes amid Oracle's substantial debt, approaching $125 billion, and significant annual investment plans of $90 to $95 billion. Despite a strong backlog of $664 billion in orders and recent revenue beats, the stock has fallen about 20% this year, as institutional investors focus on how these investments will be financed.

The trading plan is a common mechanism for executives to sell shares without being accused of insider trading, as it pre-determines the sale parameters. The plan's adoption in June, before Oracle's latest earnings report, suggests it was set during a period of uncertainty similar to that faced by other investors. However, the sheer scale of this potential sale, after nearly 30 years of minimal selling, is seen as a notable signal from the company's founder.

Potential reasons for the sale include Ellison's need for liquidity to fund large family ventures, such as his son's production company's merger with Paramount, and significant philanthropic donations. Investors will be closely monitoring the actual number of shares sold in the coming weeks to gauge whether it represents a gradual divestment or a more rapid liquidation.

For Israeli investors, this is relevant as Oracle is included in global stock indices that hold a large portion of Israeli pension savings. Ellison's decision to diversify his exposure serves as a reminder that even insiders manage risk, particularly in a sector as dynamic as AI infrastructure.