Billionaire Ellison Boosts Credit Line to $10.8 Billionby
Founder has 300 million shares of software maker as collateral
Stepped down as CEO to become chief technology officer in 2014
Billionaire Larry Ellison, the founder and former chief executive officer of Oracle Corp., has increased the amount of company stock he’s pledged against personal indebtedness and lines of credit to $10.8 billion.
Ellison, 71, holds 300 million shares of the Redwood City, California-based software maker as collateral, according to Oracle’s proxy statement released Friday. That compares with 250 million shares a year ago, valued at $9.9 billion at the time. He controls almost 1.16 billion Oracle shares, or about 27 percent of the world’s biggest database company.
Ellison, who is known for his spending on big-ticket luxury assets, had a net worth of $39.9 billion as of Thursday, according to the Bloomberg Billionaires Index. The billionaire purchased the Epiphany Hotel in Palo Alto, California, this month for $72 million. The 86-room Epiphany is a boutique hotel next-door to Stanford University that boasts of rooftop suites with views of the Santa Cruz Mountains. He also owns a sprawling custom-built Japanese-inspired home in Silicon Valley, swaths of land in Malibu, and Lanai, the sixth-largest Hawaiian island.
Ellison sponsors the U.S.’s America’s Cup team, which won the sailing competition in 2013. He stepped down as Oracle’s chief executive officer last year and now serves as its chief technology officer. The company named Mark Hurd and Safra Catz, who were previously co-presidents, as co-CEOs in September 2014.
Deborah Hellinger, a spokeswoman for Oracle, declined to comment on the credit line.
Billionaires including Sumner Redstone, the chairman of Viacom Inc., and Tesla Motors Inc. co-founder Elon Musk also use shares to secure personal debt. Musk has pledged about 7.4 million Tesla shares as collateral, valued at $1.9 billion as of Friday’s closing price, according to the company’s April 22 proxy statement.