Wizardry!
(I know that’s not how valuation of companies like this works, but even so…)
The debt servicing will require income which, which would have been taxed, except that payment of interest is pretax. Therefore, the buyback is beneficial because of the tax savings.
if larry has 1.1 billion shares it would take a few months to unwind that position without much market impact
if he wanted it done faster he would have to pay more though
The joy of writing about the rich while ignoring society struggles.- The Economist
Neither one qualified for the illustrious FAANG acronym.
Ideally, when these things happen people would examine their blindspots.
MAANGO
Put aside the online rags trying to grab eyeballs and look at investors. My RIA has been using Oracle in portfolios for decades: Oracle has been sitting quietly in my portfolio for over 25 years, just doing its thing being a solid stock and paying dividends. There are many other blue-chips out there that focus on providing a reliable product instead of being some sexy risky growth stock that grabs all the media attention.
The nature of Oracle is they are willing to evaluate if things are working or not. They build in house, they buy where they think they have a gap. The two units will be kept somewhat separate while they compete. Eventually there will be just one. To the outside world, it is a bit of a WTF on the overlapping product list. You see the same sort of competitive, aggressive nature with their Sales folks. Hunters, not farmers. What I don't see Oracle doing is pulling a Rooster.com. They likely will figure out the 'next big thing' by making sure there is a market for it, building internally and then buying up the talent that flew just a tad too close to the sun - and make something that gives a maintenance stream. When you see them doing it, you can bet it has hit the point where it will be profitable for them.
The world is big enough for both to exist.
This is a violation of the well-known rule, "Do not fall into the trap of anthropomorphising Larry Ellison".
(https://www.businessinsider.com/steve-jobs-larry-ellison-201...)
>Ellison's response: "Steve, that's really expensive real estate, this moral high ground."
I still have vivid memory of this reading it 10+ years ago. It paints so much character to Steve as a person. Which is mostly considered as an Ass Hole on HN post 2014.
Oracle is such a monstrosity of a company, it constantly shoots itself in the foot and makes bad decisions because of their enterprise-licensing-DNA.
Every time I read a story about Oracle doing well I have to check the source and am extremely suspicious.
Make an SQLite add-on that accepts Oracle SQL and configuration. Enhance, with verve.
Do people seriously think these guys are richer than Mohammed bin Salman Al Saud? Or Vladimir Putin? They have nation states at their disposal. Golden palaces. Large armies. National oil and gas industries under their control.
Their wealth and power is so obscene it’s hard to even quantify.
Comparing the Saudi regent to an american buisiniess man in networth seems quite meaningless.
Ellison can't beat that.
Owning an island inhabited by people gets him close. His only mistake was being born in wrong country. General mindset is the same.
I'd say It's not impossible but quite unlikely that he can sell it all at current market price.
Oracle will fade into obscurity sooner. Like Tivoli or Lotus or Sun.