Larry Ellison, the co-founder of Oracle Corporation, has amassed an extraordinary fortune, making him one of the wealthiest individuals in the world. As of now, Larry Ellison’s net worth is approximately $151 billion. This article explores the details of Ellison’s earnings, his investments, and the historical context that has shaped his financial journey.
Larry Ellison’s Net Worth: An Overview
Larry Ellison’s wealth primarily stems from his substantial holdings in Oracle Corporation. Ellison owns around 42% of Oracle, a software giant that he co-founded in 1977. Over the years, he has earned approximately $12 billion from Oracle stock sales and dividends. Additionally, Ellison owns roughly 1.5% of Tesla, a stake he acquired over several months in 2018 for about $1 billion. At times, when Tesla’s market cap reached $1 trillion, this stake was worth up to $15 billion.
Ellison’s net worth has made him one of the richest people globally, often ranking just behind other tycoons such as Jeff Bezos, Bill Gates, Warren Buffett, and Bernard Arnault. During his tenure as CEO of Oracle, Ellison was consistently one of the highest-paid executives in the world, earning over $90 million in some years as basic compensation, excluding dividends and stock sales.
Early Life and Career
Lawrence Joseph Ellison was born on August 17, 1944, in New York City. He was raised by his aunt and uncle in Chicago after his mother, an unwed teenager, gave him up for adoption. Ellison attended the University of Illinois at Urbana-Champaign but dropped out after his second year following the death of his adoptive mother. He later attended the University of Chicago for one semester before moving to California in 1966.
In California, Ellison worked various jobs, including a stint at Ampex Corporation, where he met future Oracle co-founder Ed Oates. Inspired by a paper on relational database management systems by Edgar F. Codd, Ellison and Oates, along with Bob Miner, founded Software Development Laboratories (SDL) in 1977. This company would later become Oracle Corporation, named after a CIA-funded project the trio had worked on.
The Rise of Oracle
Oracle Corporation revolutionized the database management industry with its flagship product, Oracle Database. The company went public on March 12, 1986, just one day before Microsoft’s IPO. At the time of the IPO, Ellison owned 39% of Oracle, which had a market cap of $270 million, giving him a paper net worth of $105.3 million.
In 1990, Oracle faced financial difficulties, losing more than 50% of its market cap and teetering on the brink of bankruptcy. Ellison’s personal net worth plummeted from around $500 million to $150 million. However, the company rebounded, and Ellison continued to lead Oracle through significant growth and expansion, solidifying its position as a leader in enterprise software and cloud computing.
Investments and Other Ventures
Beyond Oracle, Larry Ellison has made numerous investments and acquisitions, diversifying his wealth across various sectors.
Tesla Investment
In 2018, Ellison quietly acquired 3 million shares of Tesla for about $1 billion. This investment grew significantly in value, with the shares increasing to 15 million after a 5-1 stock split in August 2020. At various points in 2021, these shares were worth as much as $13 billion. Ellison served on Tesla’s board of directors until August 2022.
Real Estate Portfolio
Ellison’s real estate portfolio is extensive and includes properties around the globe. Some notable holdings include:
Woodside, California: Ellison’s primary residence is a 45-acre estate modeled after a 16th-century Japanese property, featuring a main house, guest houses, cottages, a gym, and a man-made lake. This estate is valued at around $200 million.
Malibu, California: Between 2004 and 2005, Ellison spent $180 million acquiring 12 properties, including five contiguous properties on Carbon Beach.
Lanai, Hawaii: In 2012, Ellison purchased 98% of the Hawaiian island of Lanai for $300 million. He has since invested $500 million in infrastructure improvements, including roads, a water treatment facility, and a state-of-the-art movie theater.
Palm Beach, Florida: In April 2021, Ellison bought an $80 million oceanfront mansion, later listing it for $145 million. This move was part of his strategy to relocate from California to Florida to benefit from lower taxes.
Gemini Estate: In June 2022, Ellison acquired the 16-acre Gemini estate near Palm Beach for $175 million, making it one of the most expensive home purchases in U.S. history.
Other Investments
Ellison owns the Indian Wells Tennis Garden in California and the Indian Wells Masters Tournament, which he purchased for $100 million. He has also invested heavily in the club. As an avid sailor, Ellison’s Oracle Team USA won the America’s Cup in 2010 and 2013. He owned the yacht Rising Sun, which he sold to David Geffen in 2010.
Ellison also travels in style, owning a Gulfstream G650 and two military fighter jets, including a Soviet MiG-29 and an SIAI-Marchetti S.211.
Philanthropy
Larry Ellison has donated at least $400 million to various charities and signed The Giving Pledge, committing to donate the majority of his wealth. In May 2016, he donated $200 million to the University of Southern California to establish the Lawrence J. Ellison Institute for Transformative Medicine.
Personal Life
Larry Ellison has been married and divorced four times and has two children, David and Megan Ellison, both of whom are successful film producers. Ellison’s personal life has often been in the spotlight, but he remains focused on his business ventures and philanthropic efforts.
Conclusion
Larry Ellison’s net worth of $151 billion underscores his status as one of the world’s wealthiest individuals. From founding Oracle and revolutionizing the software industry to making strategic investments and acquiring significant real estate holdings, Ellison’s financial journey is a testament to his entrepreneurial spirit and business acumen. As Oracle and his other ventures continue to thrive, Larry Ellison’s influence and wealth are likely to grow even further.
