Ellison Cancels $7.5 Billion Oracle Stock Sale Plan

According to reports, Oracle co-founder and Executive Chairman Larry Ellison has canceled a plan to sell up to 50 million shares of Oracle stock. Based on the valuation when the sale plan was announced, the shares were worth approximately $7.5 billion. Oracle announced the decision just one day after disclosing the planned sale.

Oracle said in a statement that no Oracle shares had been sold under the plan and that Ellison had no other plans to sell his Oracle holdings.

Under the previously disclosed trading plan, Ellison had been scheduled to sell up to 50 million shares by October 24. When the plan was established on June 22, the shares were valued at approximately $8.75 billion. However, after Oracle's stock price fell 16%, their value declined to around $7.5 billion. Ellison currently controls approximately 40% of Oracle's outstanding shares.

Oracle is facing increasing pressure from investors as it continues to make substantial investments in its artificial intelligence business. The company provides cloud technology and infrastructure services to customers including OpenAI, but the scale of its AI-related spending is placing additional pressure on its balance sheet.

To preserve cash, Oracle has also begun cutting thousands of jobs. The company disclosed on Friday that it expects costs related to the layoffs to reach approximately $2.8 billion, $700 million higher than its previous estimate.

The decision to cancel the stock sale could help ease some concerns in the market. However, Oracle shares still fell 1.7% on Friday after the company reported narrowing gross margins, reflecting growing investor concerns over its continued spending commitments.

Ellison has also provided significant financial backing for business activities involving his son, David Ellison, including Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery.