Jewish Billionaire Larry Ellison raises $20 billion for Oracle as stock drops
Oracle just raised twenty billion dollars in shares and bonds.
The short version
- The software giant sold stock at a discount to fund data centers.
- Investors are growing uneasy about heavy borrowing for artificial intelligence.
- The massive cash call cut deep into the founder's personal fortune.
Why it matters to you. For business owners watching the tech sector, massive infrastructure spending continues to command staggering sums of capital.
Check your portfolio if you hold tech stocks. Jewish Billionaire Larry Ellison, the software giant's co-founder and chief technology officer, just raised $20 billion through Oracle, the software company co-founded by American Billionaire Larry Ellison, selling new shares and bonds at a discount.
According to Billionaires.Africa, the company priced 86,206,897 new shares at $116 each late on Monday, raising about $10 billion, and sold a further $10 billion of senior notes. The bonds come in five fixed-rate series maturing between 2029 and 2046, with coupons ranging from 7% to 8.65%.
The massive capital raise comes as investors grow uneasy about Oracle's heavy borrowing to build massive data centers for artificial intelligence. The stock fell 8.8% to about $119 on Monday after the offering was announced, its third straight daily loss, leaving it about 17.5% below its Oct. 28 close.
Chief Financial Officer Hilary Maxson told investors at an event in Las Vegas on Oct. 28 that this $20 billion split evenly between debt and equity is the final amount needed to fund the remainder of this spending cycle. The selloff has cut deep into Ellison's wealth, with the 82-year-old now holding a net worth of $164 billion, down significantly over the past year.
Ellison owns about 1.16 billion Oracle shares, and at the $116 offering price, that holding is worth about $135 billion.
